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A N N U A L R E P O R T
qDISCLAIMER

This document contains accurate and sufficient Lima, March 20, 2019
information about Volcan Compañía Minera
S.A.A.’s business activities in 2018. Regardless
of the issuer’s liability, the undersigned are
responsible for the content herein, in accordance
with applicable laws.

José Picasso Salinas

Chairman of the board

Juan Ignacio Rosado

Gómez de la Torre
Chief executive officer
CONTENTS

6
LETTER TO
16
MACROECONOMIC
22
OUR COMPANY
SHAREHOLDERS ENVIRONMENT

32
BOARD OF DIRECTORS
40
PRINCIPAL
46
ORE RESERVES AND
AND SENIOR INDICATORS RESOURCES
MANAGEMENT

56
MINING OPERATIONS
94
EXPLORATIONS AND
106
BUSINESS
GROWTH MANAGEMENT

110
ANALYSIS OF RESULTS
118
ENERGY
122
SAFETY, HR,
AND INVESTMENTS CORPORATE SOCIAL
RESPONSIBILITY AND
ENVIRONMENT

154
AUDITED FINANCIAL
172
LEGAL AFFAIRS
180
STOCK INFORMATION
STATEMENTS

188
CORPORATE
INFORMATION
6/7 2 0 1 8 A N N U A L R E P O R T

01.
LETTER TO SHAREHOLDERS

India reached a growth rate of 7.2% in 2018, in comparison with 6.7% in 2017, In 2018, our country
DEAR SHAREHOLDERS, thanks to the strong expansion in consumption and investment in response to
reforms implemented since 2014. maintained growth
In 2018, our country maintained growth rates above the average for the
region despite facing an exceedingly complex internal political scenario and
rates above the
2018 showed a certain degree of volatility in financial markets, due to US-
volatile international outlook. The most important events occurring in the China trade tensions and the change in expectations in the adjusted US average for the
international political scene included the North Korea-South Korea agreement Federal Reserve policy interest rate. European markets were affected by Brexit
to denuclearize the Korean peninsula and begin a definitive peace process,
region despite facing
and the EU approval of Italy’s public budget.
the US-China trade war, Brexit negotiations, victories of the regime of Bashar an exceedingly
al Assad supported by Russia in Syria, the ceasefire in Yemen in December, The national political sphere in 2018 was marked by several important events. complex internal
the political and economic crisis in Venezuela, and the presidential elections After Congress again sought to impeach President Pedro Pablo Kuczynski, he
in Brazil won by right-wing candidate Jair Bolsonaro, in Mexico by left-wing resigned the presidency in March. On March 23, 2018, Congress accepted
political scenario and
candidate Andrés Manuel López Obrador and in Colombia by right-center volatile international
candidate Iván Duque. Meanwhile in Europe, Guiseppe Conte is sworn in as
new head of the Italian government and socialist Pedro Sánchez assumes outlook
power in Spain after ousting conservative Mariano Rajoy with an unparalleled
move to censor, supported by the radical left and Basque and Catalan
independents and nationalists.

In this context, the global economy grew 3.7% in 2018, a rate slightly below
the 3.8% growth the prior year. This decreased dynamism is associated with the
lower growth in China as a result of the high levels of uncertainty generated
in global markets through the promotion of US protectionist policies. This was
such that the Chinese government announced the adoption of tax cuts and
financial measures such as increased loans to Chinese companies to stimulate
higher growth. The Eurozone showed a recessive growth rate, from 2.2% in
2017 to 1.8% in 2018, due to weakened macroeconomic conditions in the
primary economies of the region during the second half of the year. Specifically,
growth in Germany was affected by geopolitical turbulence and the adoption
of new environmental standards that affected automobile production.

The US economy showed greater dynamism, with a 2.9% growth in 2018 in

comparison with 2.2% in 2017, a reduction in unemployment at historically low
levels (3.9%), greater public spending and expansion of private investments.
8/9
The mining and the president's resignation and, in accordance with the Constitution, the
presidency was assumed by Martín Vizcarra, first Vice President of the Republic.
hydrocarbon
sector went from In July, media channels published audio recordings that revealed corruption
in the justice system, which led to the resignation of Duberlí Rodriguez from
3.2% growth in the presidency of the Judicial Branch. President Martín Vizcarra addressed
2017 to a -1.3% the nation on July 28 and announced four political and legal reforms to be
submitted to referendum in December.
contraction in 2018
as a result of lower In October, the humanitarian pardon granted to Alberto Fujimori was annulled
and Keiko Fujimori, leader of Fuerza Popular, was sentenced to 36 months of
gold production. preventive detention for asset laundering. Regional and municipal elections
Production of copper, were held in Peru, where Acción Popular candidate Mr. Jorge Muñoz was
elected mayor of Lima and left-wing candidates triumphed in several parts
silver and lead was of the country. In November, Congress approved the final report of the Lava
lower on a national Jato commission. Also in November, ex-President Alan Garcia was ordered to
level remain in the country for 18 months for alleged crimes of collusion and asset
laundering. The ex-President requested political asylum from the government
of Uruguay, which was rejected days later. In December, the Supreme Court
elected José Luis Lecaros as President of the Judicial Branch. Meanwhile the
fiscal team and the ad hoc attorney’s office culminated the negotiation of a
plea bargain with Odebrecht, the company under investigation by the Lava
Jato case, wherein the company agreed to provide proof to the Prosecutors’
office and to pay the State for civil damages in the amount of 610 million
Peruvian soles over 15 years.
By national referendum, the government approved the reform of the structure
and duties of the National Justice Committee (Junta Nacional de Justicia),
the no re-election of congresspeople, and the regulation of political party
financing, while also rejecting the reform of a bicameral Congress. President
Martín Vizcarra promoted the rejection of this last reform as this proposal was
altered by Congress to include restrictions.
On December 31, 2018, national prosecutor Pedro Chávarry announced the
removal of prosecutors Rafael Vela and José Domingo Pérez from the Lava
Jato case. In light of this situation, President Vizcarra indicated that he would
present a bill to Congress to declare the Public Ministry in a state of emergency.
Finally, under pressure from all branches, national prosecutor Pedro Chavarry
resigned from his position on January 8, 2019, and the special prosecutors
assigned to the Lava Jato case were reinstated.
Despite this political situation in Peru, in 2018 the GDP showed a 4.0%
expansion, an acceleration over the 2.5% growth rate from 2017. The increased
growth is associated with greater dynamism in domestic demand, particularly
2 0 1 8 A N N U A L R E P O R T
private consumption thanks to the recovery of the consumer confidence Metal prices during
indexes and the accelerated growth of formal employment. Along these lines,
investment also showed greater dynamism. Private investment went from the early months of
0.2% growth in 2017 to 4.4% growth in 2018 and public investment went 2018 maintained
from a 2.3% drop in 2017 to an 8.4% growth in 2018. In consequence, private
investment went from representing 17.3% of the GDP in 2017 to representing the upward
17.6% of the GDP in 2018, while public investment grew from 4.5% of the trend that were
GDP in 2017 to 4.8% of the GDP in 2018.
reverted both due
Disaggregated by sector, the fishing sector grew 39.7%, thanks to greater to the uncertainty
extraction of anchovies (6.1 million MT), the highest level in the past seven
years. Non-primary sectors grew 4.2%, greater than the 2.3% expansion in
generated by the US-
2017, due to the greater dynamism in construction and manufacturing. China trade war and
The mining and hydrocarbon sector went from 3.2% growth in 2017 to a -1.3%
the arrival of new
contraction in 2018 as a result of lower gold production. Production of copper, productions on the
silver and lead was lower on a national level. supply end
The current balance of payments had a deficit of -1.5% of the GDP, greater
than the -1.2% deficit seen in 2017, however higher prices for raw materials,
especially copper, gold and zinc enabled an increase in the balance of trade
from USD 6,571 million in 2017 to USD 7,049 million in 2018. Because of
the higher deficit, the Peruvian Sol depreciated 4.17%, closing 2018 at 3.37
PEN/USD. National inflation ended the year at 2.5%, within the target range of
Peru’s Central Bank (between 1.0% and 3.0%).
Metal prices during the early months of 2018 maintained the upward trend of
the final months of 2017, both for precious metals and for base metals, which
gave stability to the mining industry in general. Zinc prices reached 3,606 USD/
MT in February 2018, reaching its historic high since July 2007. Lead followed
suit, reaching a peak of 2,589 USD/MT. However, positive expectations were
reverted both due to the uncertainty generated by the US-China trade war and
the arrival of new productions on the supply end. In terms of precious metals,
the US Federal Reserve continued its policy referential interest rate increase to
normalize its monetary policy to the detriment of precious metal prices. Gold
prices reached their lowest level in September 2018 at 1,198 USD/oz, breaking
the 1,200 USD/oz barrier; followed by silver, which decreased to 14.26 USD/
oz the same month.
The price of zinc decreased by 24.1% from 3,309 USD/MT at the end of 2017 to
2,511 USD/MT at the close of 2018. The price of lead decreased by -19.5% from
2,495 USD/MT at year-end 2017 to 2,009 USD/MT at the close of 2018, while
copper saw a 16.7% decrease to 5,965 USD/MT, silver dropped 8.3% to 15.47
USD/oz and gold decreased by 1.1% to 1,280 USD/oz.
10/11 2 0 1 8 A N N U A L R E P O R T

As can be seen through our annual monitoring, according to the Fraser

Institute's annual survey for 2018, this time Peru rose five positions in the
ranking of attractiveness for mining investment, at 14 out of 83 jurisdictions CURRENTLY THE MINING SECTOR
evaluated. However, this annual ranking evaluates two factors: geological REPRESENTS 9% OF THE GDP AND
potential and political perception. In geological potential, Peru was ranked
8th, six positions above 2017. However, in terms of the perception of public OVER 59% OF TOTAL EXPORTS,
policy and practices related to the sector, Peru was ranked a distant 43rd, WHICH DEMANDS PUBLIC
an improvement of six positions, although we continue to be outranked by
Botswana, Namibia and Chile, among others. Notably, our neighboring country POLICIES THAT ARE STRICTER IN
Chile was ranked 6th, primarily due to better political perception and stability THE DEFENSE AND PROMOTION
in the country, considering that in geological potential, this year it ranked
9th, one place below Peru. We need to place greater emphasis on promoting
OF THIS SECTOR
government policies to take advantage of Peru’s mining potential, facilitate
investment, and guarantee the start-up of important projects that continue
to be stalled, including Tía María, Cuajone, Quellaveco, Conga, Río Blanco,
Galeno, Michiquillay, and La Granja. Unfortunately, we must mention the case
of Minera Las Bambas, permanently affected by social conflict and extremist
leftist political interference which have gone so far as to halt operations.

Currently the mining sector represents 9% of the GDP and over 59% of total
exports, which demands public policies that are stricter in the defense and
promotion of this sector.

As we said years ago, it is our responsibility to stimulate the country's

development, since opportunities don't come about every day, and we
must remember that we have to compete around the world to attract new
investments that ultimately go to countries offering the best conditions. We
have observed that neighboring countries without a tradition of mining such
as Ecuador, Colombia and Argentina are beginning to position themselves
better to attract investors who will take advantage of their mining potential.

It is also important to reiterate that excessive pressure in terms of taxes

and labor, environmental, and social issues has limited opportunities for
developing the major potential of the country’s mining industry. This, in
addition to the damage caused by the Law of Prior Consultation and inefficient
use of mining royalties, which should be distributed more efficiently in line
with the needs of each region, has resulted in social conflicts that have yet to
be resolved. The result is delayed private investment and higher costs faced
by local mining companies. The executive branch has continued to attempt to
carry out a series of reforms to reduce the excessive bureaucratic procedures
that are currently required of the mining sector for exploration and project
start-up, but with results that are yet to be seen.
12/13
In 2018, Volcan production reached 241,000 FMT of zinc, 17.0 million ounces
of silver and 47,000 FMT of lead. These represent decreases of 5.5%, 1.7%
and 7.9% respectively, compared to 2017. This is primarily explained by the
stoppage of operations in the Chungar units for over three weeks and Yauli for
In 2018 production reached two weeks to ensure compliance with the Company's high safety standards.
It is important to mention that the Company continues to focus on cost control
and reduction in all operating units. The Company has identified specific
Zinc
opportunities for improvement related to the mine, supports, maintenance,
241,000 FMT transportation and administrative units, and these will be implemented in the
Silver coming months. As a result, unit cost in 2018 was 46.60 USD/MT, 2.6% less
17 millions of ounces than the 47.90 USD/MT seen in 2017.
Lead
47,000 FMT Investment in our operating units increased 2% from USD 172 million in 2017
to USD 175 million in 2018, mainly in local exploration and development.
Meanwhile, investment in regional exploration was down 76.6%, from USD
14.8 million in 2018 to USD 3.5 million in 2018 and investment in the energy
business rose 18.4% compared to the previous year, from USD 3.2 million in
2017 to USD 3 million in 2018. In total, Volcan invested USD 185 million in
2018, 4.2% less than the USD 193 million invested in 2017.
In 2018, net sales totaled USD 775 million, 9.5% lower than the USD 857
million in net sales in 2017. The Company’s gross margin decreased from 34%
in 2017 to 31% in 2018, as a result of the sales adjustments and negative final
settlements due to the downward trend in metal prices, which were partially
offset by the lower production cost and absence of third-party concentrate sales
that generates a lower margin. EBITDA rose to USD 289 million, compared to
USD 343 million in 2017, while net profits were USD 29 million.
Volcan holds 367,000 hectares of mining concessions for development of
exploration activities and mining projects. An estimate of total reserves at
Volcan was made using best industry practices and international standards
established in the JORC CODE and also adapted to guidelines established by
the technical area of Glencore (Glencore Technical Services). The estimation
methodology for resources and reserves applied in this period shows some
difference with those made previously. The resources listed also include
resources that give rise to reserves. This reporting method differs from the
method used in previous estimates, which did not include resources that gave
rise to reserves.
In terms of mine development strategy, in 2018 Volcan concentrated its
efforts on exploration at its current operations, with the aim of developing the
value chain in mineral resources. For example, the diamond drilling program
consisted of nearly 200,000 meters, primarily at the Yauli and Chungar units.
2 0 1 8 A N N U A L R E P O R T
Volcan carried out exploration in three advanced projects: Romina, Volcan carried out
Carhuacayán, and Palma, as well as two projects in the initial stage: Zoraida and
Shuco. In all, 54,211 meters of diamond-drilled boreholes were completed. At exploration in
Romina, significant mineralization has been defined in the Puagjanca body three advanced
with a significant zinc, lead and silver content. At Carhuacayán, significant
mineralization has been defined in the La Tapada body with zinc, lead and projects: Romina,
silver. Both projects, Romina and Carhuacayán, will produce ore to be treated Carhuacayán, and
in the Alpamara plant, estimated to begin production in 2020. At Palma, a
greenfield project, a significant mineralization of zinc, lead and silver has been Palma, as well as two
defined, sufficient to begin a mining project separate from the other units. The projects in the initial
pre-feasibility stage will be carried out in 2019, leaving a massive geological
potential yet to be discovered.
stage: Zoraida and
Shuco
In terms of the corporate safety policy, in 2018, the Company made
improvements to the SSOMAC1 Management System through the
implementation of new safety tools such as the implementation of the
SafeWork Program, proposed by Glencore. When Glencore merged with
Volcan’s SSOMAC system, it renewed and strengthened its thematic tools.
Even though we reduced the number of disabling accidents by 10% over
2017, we are deeply sorry to report an accident with a fatal outcome.
Investigations were carried out to determine the causes of the incident and
corrective measures were taken with an emphasis on supervision, training,
and evaluation to strengthen oversight.
As of the close of 2018, Volcan’s energy business consists of 13 hydroelectric
plants, 350 km of transmission lines and 26 electrical substations. Energy
generation in 2018 was 308 GWh, reflecting a 13% reduction over the prior
year, explained by the lower production in the Chungar hydroelectric plants
due to a lower availability of resources in water basins; and because the Rucuy
hydroelectric plant was not in operation in 2018.
On the other hand, Company energy consumption rose to 712 GWh, with
average power demand of 94 MW, up 1% over the previous year. This slight
increase was primarily caused by greater vegetative demand from mining
operations. Energy generation represented 43% of total energy consumption.
The Rucuy hydroelectric plant suffered damages to the penstock in March
2017, due to overflowing rivers and landslides, caused by the coastal El
Niño phenomenon. This plant, with 20 MW, (120 GWh-year) began business
operations in August 2016. Damages were promptly reported to the insurer
to request recognition of the damages and lost profit. In 2018, repairs were
made to the damaged penstock, which no longer crosses over the hillslope but
rather through it with a raise borer. This new design minimizes the future risk
_
* SSOMAC: Occupational Safety and Health, Environment and Quality Policy)
14/15
In 2018 the of rockslide. The Company estimates that the hydroelectric plant will restart
operations during the second half of 2019.
Company invested
USD 5 million in With respect to Volcan corporate social responsibility and care for its
surroundings, the Company seeks to engage in dialog and strengthen its
agreements with 60 relations with community leaders, key authorities and social organizations to
communities in their generate a positive impact on the development of the communities within its
direct sphere of influence. Toward that end, in 2018 the Company invested
area of influence. USD 5 million in agreements with 60 communities in their area of influence.
In addition, In addition, different Volcan units provided work to 17 community enterprises
with total billing around USD 3.4 million per month for civil works, mining
different Volcan operations, and hauling services, among others. Through the Public Works
units provided work and Tax Credit Program, the Company, at 2018 year-end, finalized the New
Chancay Food Market Project, with more than 650 stands and a PEN 22 million
to 17 community investment. This is a very important project for the city of Chancay and will
enterprises with benefit 85,000 people.
total billing around
In January 2019, in Davos (Switzerland), the Company signed agreements
USD 3.4 million per with the Chinese company Cosco Shipping Ports Limited (CSPL) for the
month development of the Chancay port, located 80 km north of Lima, through
which, once operations are closed, this company will be incorporated as 60%
shareholder of Terminales Portuarios Chancay (TPCH). Volcan will maintain
40% shares in TPCH.
CSPL is a subsidiary of Chinese company Cosco Shipping Corporation Ltd., the
largest transnational company in the world in the integrated port, shipping
and wood chip business, with USD 120 billion in assets. It holds first place
globally in container management, with 104 million TEUs per year, and more
than 60 ports operating in Asia, America, Europe and the Middle East. This
group also owns the Company COSCO SHIPPING LINE, the largest shipping
company in the world, with 1,285 vessels, forming the Ocean Alliance together
with Evergreen, CMA-CMG and OOCL shipping companies.
The first stage of construction of the Chancay port, with an estimated investment
of USD 1.3 billion includes the entrance complex, the underground viaduct
tunnel and port operating zone, which also includes the container terminal
with two docks and the bulk loading, general loading and mobile loading
terminal with two more docks. This amount includes the contribution already
made by Volcan and the CSPL contribution of USD 225 million for 60% of
shares. The rest of the investment will be financed by debt.
2 0 1 8 A N N U A L R E P O R T
The development of the Chancay port represents a major opportunity for The development
economic development in Peru through a new network of connectivity made
up of maritime and terrestrial economic trade routes between China and the of the Chancay port
rest of the world. The exceptional characteristics of the Chancay port will enable represents a major
this to become the integrated port and logistical hub in the Pacific region in
the medium term. opportunity for
economic
It is worthy of mention that during 2018, our company began a technological
and mine practice integration process as a first year of joint venture with our development in
main partner Glencore A.G., establishing the foundations for a lower cost Peru through a
mining operation with higher safety standards, environmental protection and
sustainability policies and social responsibility.
new network of
connectivity made
Finally, I would like to take this opportunity, on behalf of our Board of Directors,
to thank all of our employees, executives and partners for their hard work,
up of maritime and
dedication, and commitment to the Company's objectives. It’s also important terrestrial economic
to mention that we now have a history of seven decades of investment in trade routes between
mining development in our country's central highlands, with a commitment
to sustainable growth in harmony with surrounding communities and the China and the
environment. This hasn't been an easy undertaking, however. There have been rest of the world
numerous challenges, and thanks to the hard work of our founders and those
who have enabled the Company to continue to grow–workers, engineers,
executives and directors–we have successfully overcome them.
Finally, I would like to thank you, our shareholders, for your confidence, support
and interest in Volcan’s activities.
José Picasso Salinas
Chairman of the Board
16/17 2 0 1 8 A N N U A L R E P O R T

02.
MACROECONOMIC ENVIRONMENT

qINTERNATIONAL OUTLOOK

In 2018, the global economy grew 3.7%, a rate slightly below the 3.8% growth
the prior year. The lower dynamism is associated with the lower growth in
China, whose GDP expansion rate went from 6.8% in 2017 to 6.6% in 2018,
the lowest since 1990, as a result of the high level of uncertainty generated
in global markets by the promotion of US protectionist policies, which has In 2018, the
been reflected in the setback in the global manufacturing indicator. It was global economy
in this context that the Chinese government announced the adoption of tax grew 3.7%, a rate
cuts and financial measures such as increased loans to Chinese companies slightly below the
to stimulate higher growth. Along these lines, the Eurozone showed a 3.8% growth
recessive growth rate, from 2.2% in 2017 to 1.8% in 2018, due to weakened the prior year
macroeconomic conditions in the primary economies of the region during
the second half of the year. Specifically, growth in Germany was affected by
geopolitical turbulence and the adoption of new environmental standards
that affected automobile production.

The US economy showed greater dynamism, showing a 2.9% growth

in 2018 in comparison with 2.2% in 2017, in a scenario of reduction in
unemployment at historically low levels (3.9%), greater public spending
and expansion of private investments. India reached a growth rate of 7.2%
in 2018, in comparison with 6.7% in 2017, thanks to the strong expansion
in consumption and investment in response to reforms implemented since
2014.
18/19 2 0 1 8 A N N U A L R E P O R T

2018 showed a certain degree of volatility in financial markets, accentuated Domestic Production of Principal Metals Higher prices for raw
during the last quarter of the year with the agent's increased aversion to risk due
to US-China trade tensions and the change in expectations in the adjusted US 2017 2018 VAR % materials for export,
Federal Reserve policy interest rate in a scenario with greater employment and especially copper,
economic growth. European markets were affected by the uncertainty generated Zinc (thousands of FMT) 1,473 1,475 0.1
by the possible exit of the United Kingdom from the European Union (Brexit) and Lead (thousands of FMT) 307 289 -5.7 gold and zinc,
the EU approval of Italy’s public budget. Copper (thousands of FMT) 2,446 2,437 -0.4 enabled an increase
Silver (thousands of Oz) 142 134 -5.8 in the balance of
As a result of this increased uncertainty, the US dollar appreciated in relation to the
main global currencies. Along these lines, most stock markets registered losses.* Gold (thousands of Oz) 4,886 4,586 -6.1 trade from USD 6.571
Source: Ministry of Energy and Mines billion in 2017 to
qPERUVIAN ECONOMY Peru’s current balance of payments had a deficit of 1.5% of GDP, greater than the USD 7.049 billion in
Private investment 1.2% deficit seen in 2017. Higher prices for raw materials for export, especially
2018
went from 0.2% In 2018, the Peruvian GDP showed a 4.0% expansion, an acceleration over the copper, gold and zinc, enabled an increase in the balance of trade from USD 6.571
2.5% growth rate from 2017. The increased growth is associated with greater billion in 2017 to USD 7.049 billion in 2018, partially offset by the higher price of
growth in 2017 dynamism in domestic demand, particularly in private consumption thanks our imports (primarily petroleum and wheat) and the higher volume of imports in
to 4.4% growth in to the recovery of the consumer confidence indexes, the accelerated growth line with the greater dynamism of internal demand. This was offset by the higher
of formal employment and reduction in unemployment rates. Along these deficit in the balance of services due to lower revenue from financial services.
2018 and public lines, investment also showed greater dynamism. Private investment went Because of the higher deficit, the Peruvian Sol depreciated 4.17%, closing 2018
investment from 0.2% growth in 2017 to 4.4% growth in 2018 and public investment at 3.37 PEN/USD.
went from a 2.3% went from a 2.3% drop in 2017 to an 8.4% growth in 2018. In consequence,
private investment went from representing 17.3% of the GDP in 2017 to Inflation in Peru ended the year at 2.5%, and inflation in Metropolitan Lima ended
drop in 2017 to an representing 17.6% of the GDP in 2018, while public investment grew from the year at 2.2%, both within the target range of Peru’s Central Bank (between
8.4% growth in 2018 4.5% of the GDP in 2017 to 4.8% of the GDP in 2018. 1.0% and 3.0%).

In real terms, exports of goods and services grew 2.5% in 2018, lower that the
7.8% growth the previous year, due to lower exported volumes of traditional qMETAL PRICES
products like minerals, petroleum and natural gas. This was partially offset
by greater dynamism in non-traditional exports, whose volumes went from The first half of the year maintained the upward trend in prices of the final months
7.2% growth in 2017 to 10.8% growth in 2018. In nominal terms, exports of of 2017, both for precious metals and for base metals, which gave stability to the
goods and services went from USD 52.7 million in 2017 to USD 56.3 million mining industry in general.
in 2018, an annual growth of 6.9%.
Evolution of Average Metals Prices
Specifically the mining and hydrocarbon sector went from 3.2% growth in
2017 to 1.3% contraction in 2018, as a result of the lower production of gold, 2012 2013 2014 2015 2016 2017 2018
particularly in the Barrick mines Lagunas Norte and Pierina, Poderosa, La
Arena, Gold Fields, La Zanja and Orcopampa. Production of copper, silver and Zinc (USD/MT) 1,948 1,910 2,162 1,933 2,091 2,894 2,925
lead was lower on a national level. The fishing sector grew 39.7%, thanks to Lead (USD/MT) 2,062 2,142 2,096 1,786 1,871 2,318 2,244
greater extraction of anchovies (6.1 million MT), the highest level in the past Copper (USD/MT) 7,949 7,326 6,860 5,502 4,863 6,163 6,525
seven years. Non-primary sectors grew 4.2%, greater than the 2.3% expansion
Silver (USD/oz) 31.2 23.9 19.1 15.7 17.1 17.1 15.7
in 2017, due to the greater dynamism in construction and manufacturing.

_
* Developed economies: S&P 500 - United States (-6.2%); Nikkei 225 - Japan (-12.1%); DAX - Germany
(-18.3%), CAC 40 - France (-11.0%); FTSE 100 - U.K. (-12.5%) and IBEX 35 - Spain (-15.0%). Emerging econo-
mies: IPSA - Chile (-10.6%); SP/BVL Peru General - Peru (-3.1%); BOVESPA - Brazil (+15.0%); COLCAP - Colombia
(-12.4%).
20/21 2 0 1 8 A N N U A L R E P O R T

Zinc prices reached 3,606 USD/MT in February this year, reaching its historic high
Zinc prices reached since July 2007. Lead followed suit, reaching a peak of 2,589 USD/MT. However,
3,606 USD/MT positive expectations were reverted due to both the uncertainty generated by the
in February this US-China trade war and the arrival of new productions on the supply end.
year, reaching its
historic high Zinc Price (USD/FMT)
since July 2007

3,700
3,200
2,700
1,700
1,200
2016 2017 2018

In terms of precious metals, the US Federal Reserve continued its policy referential
interest rate increase to normalize its monetary policy to the detriment of precious
metal prices. Gold prices reached their lowest level in September 2018 at 1,198
USD/oz, breaking the 1,200 USD/oz barrier; followed by silver, which decreased to
14.26 USD/oz the same month.

Silver Price (USD/oz)

22
20
18
16
14
12
10
2016 2017 2018
22/23 2 0 1 8 A N N U A L R E P O R T

03.
OUR COMPANY

qHISTORY

The Company started mining operations in 1943 in the upper Ticlio pass. Through
the continuous hard work and dedication of its directors and employees, Volcan
has become one of the leading producers of silver, zinc and lead in Peru and the
world.

Initially, Volcan operations were limited to the Carahuacra and Ticlio mines, a
group of 30 mining concessions. The ore extracted was sold to the Mahr Túnel
concentrator plant, owned at the time by U.S. investment company Cerro de Pasco
Copper Corporation, which was expropriated by the military government in the
early 1970s.

In the 1990s, in the context of economic reforms implemented by the government

and aimed at stimulating private investment in public companies, Volcan began
expanding its operations through the acquisition of mining areas and their
respective assets. The vision of the Board of Directors and the leadership of Dr.
Roberto Letts were fundamental to the Company's growth.

Through an international public auction in 1997, Volcan Compañía Minera S.A.

acquired the Mahr Túnel, San Cristóbal and Andaychagua mining operations and
the Mahr Túnel and Andaychagua plants by purchasing Empresa Minera Mahr
Túnel S.A., which then belonged to Centromin Perú. The acquisition was valued
at USD 128 million plus an investment commitment of USD 60 million. One year
later, Empresa Minera Mahr Túnel S.A. merged with Volcan Compañía Minera S.A.
and the resulting company was named Volcan Compañía Minera S.A.A.
24/25 2 0 1 8 A N N U A L R E P O R T

Timeline:
Volcan acquired Empresa
Empresa
Administradora
Chungar S.A.C.
75 YEARS The Company signed
Administradora Chungar S.A.C. completed Islay mine was consolidated through agreements with the
Volcan acquired Empresa Minera Mahr and Empresa Explotadora de construction acquisition of two nearby mining concessions. Rucuy hydroelectric plant Chinese company Cosco
Tunel owner of San Cristobal and Vinchos Ltda. S.A.C., owners of of the Baños IV Volcan completed expansion of the began operations. Volcan Shipping Ports Limited
Volcan began Andaychagua mines and the Animón and Vinchos mines, hydroelectric Animón concentrator and finished expanding acquired the Romina (CSPL) for the development
its operation Mahr Tunel and Andaychagua plants respectively plant the Victoria and Andaychagua plants polymetallic project from Milpo. of the Chancay port

1943 1990 1997 1999 2000 2004 2009 2012 2013 2014 2016 2017 2018

Volcan began Volcan acquired Empresa Minera Volcan also acquired the Volcan placed 10-year corporate bonds Started operations at the Glencore acquired 55% of
expanding its Paragsha S.A.C., this transaction included Baños I, II, III, and IV and totaling USD 600 million at a fixed rate of new Alpamarca unit and the Class A common shares in
operations through the Cerro de Pasco unit. As a result of this Chicrín hydroelectric plants 5.375%. Volcan bought Empresa Cerro de Pasco oxide plant. the Public Tender Offer
the acquisition of acquisition, Volcan became the largest Hidroeléctrica Huanchor S.A.C., and started Volcan acquired Tingo
mining areas and their zinc producer in Peru. operation of the Baños V hydroelectric hydroelectric plant
respective assets plant.
26/27
Subsequently, in 1999 Volcan acquired Empresa Minera Paragsha S.A.C. from
Centromin Perú for USD 62 million plus an investment commitment of USD
70 million. In addition, Volcan agreed to take on USD 20 million of Centromin’s
financial debt. This transaction included the Cerro de Pasco UEA. As a result of this
acquisition, Volcan became the largest zinc producer in Peru.
In 2000, Volcan acquired Empresa Administradora Chungar S.A.C. and Empresa
Explotadora de Vinchos Ltda. S.A.C., owners of the Animón and Vinchos mines,
respectively, in transactions with a total value of USD 20 million in cash and USD
16 million in Volcan Class B shares. This acquisition included the Françoise and San
José II hydroelectric plants, with total generation capacity of 2.2 MW. Operations
began at the Vinchos silver mine in 2004. Volcan also acquired the Baños I, II, III,
and IV and Chicrín hydroelectric plants, with a combined capacity of 7.5 MW.
In 2006, Volcan acquired Minera Santa Clara and Llacsacocha S.A., owner of the
Zoraida Mine. One year later, Volcan bought Compañía Minera El Pilar, owner of El
Pilar Mine, adjacent to Cerro de Pasco Mine and pit.
2 0 1 8 A N N U A L R E P O R T
In 2009, Empresa Administradora Chungar S.A.C. completed construction of the
Baños IV hydroelectric plant, giving Volcan a total of 13 MW of installed capacity.
Then, in 2010 Volcan acquired Compañía Minera San Sebastián, whose mining
concessions are also located near Cerro de Pasco.
In January 2011, the Company approved a simple reorganization of the Cerro
de Pasco UEA. As a result, that unit was renamed Empresa Administradora Cerro
S.A.C. and it became a subsidiary of Volcan Compañía Minera S.A.A. The goal of the
reorganization was to enable each mine unit to be managed independently.
In January 2012, as part of an international bond issue under Rule 144A and
Regulation S of the United States Securities Act of 1933, Volcan placed 10-year
corporate bonds totaling USD 600 million at a fixed rate of 5.375%. This bond issue
provided financing for the oxide plant growth projects at Cerro de Pasco and the
new Alpamarca operating unit.
Later, in February 2012, Volcan bought Empresa Hidroeléctrica Huanchor S.A.C.,
with a capacity of 19.6 MW, from Sociedad Minera Corona S.A. for USD 47 million.
Also that year, Empresa Administradora Chungar S.A.C. completed construction and
started operation of the Baños V hydroelectric plant. The 9.2-MW plant required a
total investment of USD 24 million.
In 2013, the Islay mine was consolidated into the Chungar operating unit through
acquisition of two nearby mining concessions–Islay and Islay 4–for USD 17 million.
Early that year the Company completed expansion of the Animón concentrator
plant from 4,200 to 5,200 tpd (tons per day). Also in 2013, the Company finished
expanding the Victoria and Andaychagua plants in the Yauli UEA, increasing
capacity to 10,500 tpd.
In 2014, Volcan continued expanding the treatment capacity of Yauli UEA plants
to reach 10,800 tpd. Also, operations began in the Jacob Timmers shaft (Chungar
UEA), with a nominal capacity of 4,000 tpd.
In July 2014, Volcan acquired the 1.25-MW Tingo hydroelectric plant and 82 km of
22.9-kV and 50-kV transmission lines, for a total of USD 13.5 million. The Company
plans to expand this plant to approximately 15 MW and connect it to the Alpamarca
and Chungar UEAs.
In 2014, the company started operations at the new Alpamarca unit and the Cerro
de Pasco oxide plant, which reached full capacity in June 2015. Investment in those
projects totaled USD 280 million.
In 2015, the following company reorganizations were undertaken: the merger
through which Chungar absorbed the assets of El Pilar, Huascarán, Santa Clara,
28/29 2 0 1 8 A N N U A L R E P O R T

Shalca, and Troy, which took effect on September 1, 2015; the splitting from qCORPORATE STRUCTURE 2018
Empresa Administradora Cerro S.A.C. of a block of equity composed of assets
Volcan Compañía Minera S.A.A.
and liabilities related to the oxide plant, which took effect on October 1, 2015;
and the merger in which Compañía Minera Alpamarca S.A.C. absorbed Empresa
Administradora Chungar S.A.C., which took effect on January 1, 2016. Finally, this
99.99% 99.99% 99.99% 100.00% 99.99% 99.90% 96.33%
company changed its business name to Compañía Minera Chungar S.A.C.
Hidroeléctrica Óxidos Empresa Terminales Roquel Corporación Compañía
Huanchor de Pasco Minera Portuarios Global Logística Industrial
It is important to note that in August 2016 the Rucuy 20-MW hydroelectric plant S.A.C. S.A.C. Paragsha S.A.C. Chancay S.A. S.A.C. Chancay S.A.C. Limitada de
(120 GWh/year) began operations. The total investment in this unit was USD 50 Huacho S.A.
million. With this latest addition, the Company now has 13 hydroelectric plants in
operation with a total capacity of 63 MW. 98.38% 80.00% 4.72% 95.28%

Empresa de Minera Compañía

Also in 2016, Volcan acquired the Romina polymetallic project from Milpo. From Generación Aurífera Minera
2008 to 2012, more than 13,000 meters of diamond drilling was carried out at Eléctrica Río Toruna S.A.C. Chungar S.A.C.
the deposit. This project will provide operational continuity to the Alpamarca unit. Baños S.A.C.

In November 2017, Glencore International AG carried out a public tender offer 99.99% 49.62% 50.38%
to acquire class A common shares, eventually purchasing a total of 603,077,387 Remediadora Empresa
shares. As of the launch date of the public offer, Glencore International AG and Ambiental Explotadora de
its affiliated companies already held 295,754,888 shares. The share acquisition S.A.C. Vinchos S.A.C.
brought the total number of class A shares it holds to 898,832,275, or 55.028% of
10.22%
class A shares and 23.29% of total company equity (considering the class A shares
and class B shares that the Company has in its portfolio). 39.24% 50.54%

Empresa
Through the Public Works and Tax Credit Program, the Company, at 2018 year end, Administradora
finalized the New Chancay Food Market Project, with more than 650 stands and a Cerro S.A.C.
PEN 22 million investment. This is a very important project for the city of Chancay 2.73%
and will benefit 85,000 people.
In January 2019, in Davos (Switzerland), the Company signed agreements with 99.98% 8.39% 88.88%

the Chinese company Cosco Shipping Ports Limited (CSPL) for the development Compañía Compañía
of the Chancay port, located 80 km north of Lima, through which, once operations Hidroeléctrica Minera
are closed, this company will be incorporated as 60% shareholder of Terminales Tingo S.A. Vichaycocha
S.A.C.
Portuarios Chancay (TPCH). Volcan will maintain the remaining 40% shares in TPCH. 18.64%

As a result, Volcan celebrates 75 years in operation since its founding and has more 4.33% 77.03%
than 367,000 hectares of mining concessions, 12 mines, seven concentrator plants Minera San
and a lixiviation plant, and is a truly diversified, international leader in zinc, lead, Sebastián
and silver production. AMC S.R.L.
30/31 2 0 1 8 A N N U A L R E P O R T

qBUSINESS GROUP AND CORPORATE PURPOSE qLOCATION OF PRINCIPAL MINING HOLDINGS

COMPANY NAME COMPANY ID CORPORATE PURPOSE

Volcan Compañía Minera S.A.A. 20383045267 Mining of other non-ferrous metal ores Óxidos
PERU
Compañía Minera Chungar S.A.C. 20514608041 Production of other mines and quarries Cerro de
Pasco
Empresa Administradora Cerro S.A.C. 20538848060 Mining of other non-ferrous metal ores
Óxidos de Pasco S.A.C. 20600715187 Smelting of non-ferrous metals
Empresa Exploradora de Vinchos Ltda. S.A.C. 20100539439 Mining of other non-ferrous metal ores
Empresa Minera Paragsha S.A.C. 20347644502 Mining of other non-ferrous metal ores
Minera Aurífera Toruna S.A.C. 20510318227 Production of other mines and quarries
Minera San Sebastián AMC S.R.L 20447348421 Production of other mines and quarries
Compañía Industrial Limitada de Huacho S.A. 20102200170 Real estate activities Islay Animón
Compañía Minera Vichaycocha S.A.C 20504972241 Production of other mines and quarries Romina
Electric power generation, transmission and
Hidroeléctrica Huanchor S.A.C. 20546236073
distribution
Carhuacayán
Empresa de Generación Eléctrica Río Baños Electric power generation, transmission and Alpamarca
20537761670
S.A.C. distribution
Electric power generation, transmission and
Compañía Hidroeléctrica Tingo S.A. 20521371103
distribution
Terminales Portuarios Chancay S.A.C. 20543244300 Other business activities
Roquel Global S.A.C. 20602370748 Other transportation support activities
Corporación Logística Chancay S.A.C. 20602314392 Other transportation support activities
Remediadora Ambiental S.A.C. 20600655133 Other professional, scientific, technical activities Ticlio
Carahuacra
Chancay San Cristóbal
Port Andaychagua
Project

Zoraida
Callao
Port

Palma

Volcan Volcan Volcan Volcan Mining Corporate Main Train

Mine Hydro Concentrator Lixiviation projects office National road
Plant Plant Plant Road
32/33 2 0 1 8 A N N U A L R E P O R T

04.
BOARD OF DIRECTORS AND
SENIOR MANAGEMENT
qBOARD OF DIRECTORS

Board of Directors as of December 31, 2018

NAME AND LAST NAME POSITION

José Picasso Salinas Chairman

José Ignacio De Romaña Letts Vice Chairman
Christopher Eskdale Director
Irene Letts Colmenares de De Romaña Director
Daniel Maté Badenes Director
Carlos Perezagua Marín Director
Victoria Soyer Toche Director

Professional Background of the Board of Directors:

José Picasso Salinas

Director and member of the Executive Committee since March 1996. Vice
chairman of the Board of Directors; since April 2010, chairman of the Board and
the Executive Committee.

Mr. Picasso is also Chairman of the Board of Reactivos Nacionales S.A., Vice
Chairman of the Board of Compañía Minera Poderosa and member of the boards
of Bodegas Vista Alegre, Cemento Polpaico S.A and the National Society of Mining,
Petroleum and Energy. He previously served as Vice Chairman of Embotelladora
Latinoamericana S.A.A. (Coca-Cola) and member of the boards of Compañía
Minera Atacocha S.A., EXSA, S.A., Castrovirreyna Compañía Minera, Compañía
Molinera del Perú, Compañía de Seguros La Fénix Peruana S.A., Bolsa de Valores
de Lima and Acción Comunitaria.
34/35
José Ignacio De Romaña Letts
Director desde 1993 y vicepresidente del Directorio desde septiembre de 2014. Es
miembro del Comité Ejecutivo. Trabajó en la subgerencia comercial de Compañía
de Minas Buenaventura desde 1992 hasta 1999, estuvo a cargo de la gerencia
comercial de Volcan entre 2000 y 2010. También se desempeñó como director
de Castrovirreyna Compañía Minera S.A. y de Corporación Minera Castrovirreyna
desde 2002 hasta el 2012.
Mr. De Romaña holds a business administration degree from Universidad del
Pacífico.
Mr. José Ignacio De Romaña Letts is the son of the director Irene Letts Colmenares
de De Romaña.
Christopher Eskdale
Director since March 2012. A certified public accountant, he worked at Deloitte &
Touche in London and Moscow and has been with Glencore since 1996.
He holds a master’s degree from Oxford University and is a public accountant
certified by the Institute of Chartered Accountants in England and Wales. He is in
charge of worldwide zinc marketing for Glencore.
Irene Letts Colmenares de De Romaña
Director since March 2012. She has also served on the boards of Ferrocarril
Central Andino S.A. and Ferrovías Central Andina S.A. since 2004, on the boards
of Proyectos Médicos and Clínica Montesur since 2002, and the board of Nueva
Ginecología y Vida S.A.C. at Jockey Salud since 2007.
Mrs. Letts studied social work at Universidad Nacional Mayor de San Marcos and
economics at Universidad de Lima.
Mrs. Irene Letts Colmenares de De Romaña is the mother of vice chairman José
Ignacio De Romaña.
Daniel Maté Badenes
Director since March 2006. He has served as co-director of the zinc, lead, and
copper divisions at Glencore International since February 2000, overseeing
marketing and industrial assets, including strategy and operations. Mr. Maté
has worked at Glencore since 1988, starting at the office in Madrid and later
obtaining experience in metals transactions and logistics in Spain and North
Africa. After three years at Glencore’s Madrid office, he joined the zinc and lead
department in Switzerland in August 1991. In February 2002, he transferred to
the copper department, where he was responsible for zinc concentrate operations
2 0 1 8 A N N U A L R E P O R T
in Spain, North Africa, and South America. He was subsequently placed in charge
of worldwide zinc marketing for Glencore.
Mr. Maté is an economist and has a law degree from Universidad de Deusto in
Spain.
Carlos Perezagua Marín
Director since November 2017. He is co-director of corporate finance and capital
markets at Glencore. Since December 2013 he has also served as general director
of risk at Glencore. He has been with Glencore since 2009. Prior to that, he spent 11
years in investment banking with Morgan Stanley and Citigroup, in the corporate
financing and high risk bond departments in London and Madrid.
Mr. Perezuaga is an economist and has a law degree from Universidad Pontificia
de Comillas (ICADE) in Spain.
Victoria Soyer Toche
Director since November 2017. She holds a degree in business from Universidad
del Pacífico and an MBA from Thunderbird School of Management.
Prior to joining the Glencore group in 2010, she spent seven years in various
positions with Tyco International in the United States, most recently as finance
director from 2008 until leaving the company in 2010.
Ms. Soyer is also a member of the board of directors of Textil del
Valle, Perubar, and Transportadora Callao.
qSENIOR MANAGEMENT
In 2018, the following people left the Company:
• Juan Carlos Ortiz Zevallos, Chief operations officer
• José Luis Alcalá Valencia, Occupational health and safety manager
• David Brian Gleit, Investor relations manager
36/37
Management
NAMES AND LAST NAMES
Juan Ignacio Rosado Gómez de la Torre
Carlos Francisco Fernández Navarro
Aldo de la Cruz Peceros
Jorge Leoncio Murillo Núñez
Vanessa Alta de Marzi
Alberto Víctor Manuel Gazzo Baca
Roberto Juan Servat Pereira de Sousa
Juan Alberto Begazo Vizcarra
Alfonso Rebaza Gonzales
Mario Eduardo de las Casas Vizquerra
Álvaro Luis Cabrera Ramírez
José Edmundo Montoya Stahl
Eduardo Enrique Malpartida Espinoza
Juan Luis Arenas Gómez Sánchez
Edgardo Zamora Pérez
Carlos Manuel Garda Zapata
Francisco Grimaldo Zapata
Adrián Felipe Corihuamán Mayta
Reynol Renzo Fuentes Fernández
James Atalaya Chacón
Julio César Beraún Sánchez
Percy Mamani Ureta
César Augusto Velazco Cornelio
Eduardo Julio Magnasco La Torre
Percy Luis Rivera López
Pedro Simón Navarro Neyra
Willy Antonio Montalvo Callirgos
Dayan Gustavo Segura Vandervelde
Mauricio Scerpella Iturburu
César Emilio Farfán Bernales
Renzo Muente Barzotti
Ronald Martín Castillo Ángeles
Jorge Luis Cotrina Luna
2 0 1 8 A N N U A L R E P O R T
POSITION
Chief executive officer
Executive vice president
Vice president of operations
Vice president of administration and finance
Sales manager
Human resources manager
Corporate social responsibility and labor relations manager
Audit manager
Legal counsel
Logistics manager
Energy manager
Chief mining development officer
Occupational health and safety manager
Industrial plant manager
Corporate planning manager
San Cristóbal - Carahuacra operations CEO
Alpamarca operations manager
San Cristóbal Mine operations manager
Ticlio operations manager
Chungar operations manager
Cerro de Pasco operations manager
Chungar operations manager
Geology manager
Maintenance and quality manager
Environmental affairs manager
Finance manager
Accounting and tax manager
Information technology manager
Budgeting and management control manager
Regional explorations manager
Employee development manager
Contract manager
Securities manager
38/39 2 0 1 8 A N N U A L R E P O R T

Chungar Plant, Cerro de Pasco.

40/41 2 0 1 8 A N N U A L R E P O R T

05.
PRINCIPAL INDICATORS

qMARKET INDICATORS
Evolution of the Average Spot Evolution of the Average Spot Evolution of the Average Spot
Price for Zinc (USD/MT) Price for Lead (USD/TM) Price for Silver (USD/oz)

2014 2014 2014

2,162 2,096 19.1
2015 2015 2015
1,933 1,786 15.7
2016 2016 2016
2,091 1,871 17.1
2017 2017 2017
2,894 2,318 17.1
2018 2018 2018
2,925 2,244 15.7

2018 2018 2018

2,925 (USD/MT) 2,244 (USD/MT) 15.7 (USD/oz)

Zn Pb Ag
42/43 2 0 1 8 A N N U A L R E P O R T

Production Indicators 2018 Ranking of Production in Peru – Fines

THOUSANDS
ZINC
OF MT
2014
4.4 Compañía Minera Antamina S.A.1 475.7
3.8
0.9 Volcan Compañía Minera S.A.A. and 241.1
241.1 thousand of MT

Zn
0.1 Subsidiaries
7.4
Nexa Resources Perú S.A.A. and Subsidiaries 1 214.9
2015 Compañía de Minas Buenaventura S.A.A. 2
66.9
4.4 Compañía Minera Raura S.A. 1
47.3
4.2
1.0
0.1
7.9 THOUSANDS
LEAD
OF MT
2016
4.4 Nexa resources Perú S.A.A. and Subsidiaries 1 49.5
3.9 Volcan Compañía Minera S.A.A. and 47.2
0.9 47.2 thousand of MT

Pb
0.1 Subsidiaries
7.7 Compañía de Minas Buenaventura S.A.A. 2 42.1
2017 Compañía Minera Raura S.A. 1
19.7
3.9 Compañía Minera Corona S.A. 1
13.3
3.0
0.8
0.1
8.3 MILLIONS OF
SILVER
OZ
2018
3.8 Compañía de Minas Buenaventura S.A.A. 2 23.4
2.9
0.8 Compañía Minera Antamina S.A. 1
17.5
0.1 Volcan Compañía Minera S.A.A. and 17.0
17 millions of oz

Ag
8.1 millions MT 8.1 Subsidiaries
treated Hochschild Perú 3 16.6
% Polymetallic Zn oz Ag / MT % Polymetallic Pb
% Polymetallic Cu Millions of MT Treated Nexa Resources Perú S.A.A. and Subsidiaries 1
8.9
1
Considers amount reported to MINEM
2
Considers amount reported to MINEM. Includes the 61.37% owned by El Brocal.
3
Total production of Hochschild is 19.7 million ounces, including its shares in San José in Argentina.
Source: company reports, Ministry of Energy and Mines
44/45 2 0 1 8 A N N U A L R E P O R T

Evolution of Fines Production qFINANCIAL INDICATORS

Evolution of Sales (millions of USD)

24.8
22.5 22.0 2014
1,042
281 285 273 17.3 17.0 2015
795
255 2016
241 822
57 60 52 51 47 2017
857
3 4 5 5 5 2018
775
2014 2015 2016 2017 2018
Evolution of EBITDA (millions of USD)
Ag (Millions of oz) Zn (000 FMT) Pb (000 FMT) Cu (000 FMT)

2014
257
2015
225
2016
303
2017
343
2018
288

Evolution of Net Profit (millions of USD)

2014
49 57
2015
-454 16
2016
84
2017
-477 93
2018
29 30

Net Profit before Exceptional Charges

Net Profit after Exceptional Charges
46/47 2 0 1 8 A N N U A L R E P O R T

06.
ORE RESERVES AND RESOURCES

Ore reserves and resources for Volcan Compañía Minera have been estimated The resources listed
as of December 31, 2018 in accordance with best industry practices and the
international standards of the JORC CODE.* This estimate has been part of the in this report also
official report of Glencore Zinc, which required that the estimation process be include resources
adapted to the guidelines established by the technical area of Glencore (Glencore
Technical Services). that give rise to
reserves
The estimation methodology for resources and reserves applied in this period
shows some difference with those made previously. The resources listed in this
report also include resources that give rise to reserves. This reporting method
differs from the method used in previous estimates, which did not include
resources that gave rise to reserves.

Evolution of Metal Prices Applied to Reserve Estimates

PRICES 2010 2011 2012 2013 2014 2015 2016 2017 2018

Zinc (USD/MT) 1,800 1,800 1,800 1,900 2,200 2,200 2,300 2,450 2,440
Lead (USD/MT) 1,800 1,800 1,800 2,000 2,000 2,000 2,100 2,100 2,030
Copper (USD/MT) 5,000 6,500 6,500 6,500 6,500 6,500 5,800 6,400 6,500
Silver (USD/oz) 12.0 15.0 15.0 20.0 18.0 18.0 18.0 18.5 16.0
Gold (USD/oz) 900 1,000 1,000 1,200 1,200 1,200 1,200 1,250 1,250

_
2
The Statement of Zinc Mineral Resources and Ore Reserves as of December 31, 2018, has been compiled in keeping with the Australasia Code of 2012 for the Reporting of
Results of Ore Exploration, Resources, and Reserves (JORC Code).
The term “ore reserves” as defined in Clause 28 of the JORC Code has the same meaning as “ore reserves” as defined by the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Standards when defining mineral resources and ore reserves.
The declarations of Mineral Resources and Ore Reserves have been reviewed and the relevant data extracted and compiled by Aline Cote, Glencore Zinc (OGQ).
48/49 2 0 1 8 A N N U A L R E P O R T

Specialized software was used in the process of defining the reserves to generate
Zinc mining areas, achieving a more precise representation of the internal dilution in
2,440 USD/MT the volumes to be mined. This procedure obtained reserves that adapted with SPECIALIZED SOFTWARE
greater precision in tonnage and grade to expected production. WAS USED IN THE PROCESS
Lead
2,030 USD/MT In 2018, the Company continued to develop its diamond drilling programs OF DEFINING THE RESERVES
for exploration, definition of resources and infill drilling. The purpose of these TO GENERATE MINING AREAS,
programs is to replace and increase the Company’s resources and reserves, to
Copper
enable an adequate planning of production and ensure long-term stability. ACHIEVING A MORE PRECISE
6,500 USD/MT REPRESENTATION OF THE
Reserves and resources as of December 31, 2018 were calculated using long-term
Silver
metal price annual projections for the life-of-mine of each operating unit. Average
INTERNAL DILUTION IN THE
16 USD/oz prices used were 2,440 USD/MT for zinc, 2,030 USD/MT for lead, 6,500 USD/MT VOLUMES TO BE MINED
for copper, 1,250 USD/oz for gold and 16 USD/oz for silver.
Gold
1,250 USD/oz
qORE RESERVES

Ore reserves are the economically extractable part of a measurable or indicated

mineral resource. Reserves include the dilution of material and contingencies
for losses that may occur during mining. Reserves are categorized as proven or
probable depending on the degree of confidence.

This estimate was made by applying the guidelines established under best
industry practices, and aligning Volcan procedures and methodologies with
standards used by Glencore on a corporate level. Procedures have been aligned in
the Chungar, Yauli and Alpamarca mines, and the Cerro de Pasco mine is currently
in the alignment process.

Company reserves as of December 31, 2018, reduced their tonnage by 32%

over the previous year. The tonnage reduction is basically due to changes at the
Cerro de Pasco unit. Zn, Pb and Cu grades underwent almost no variation over the
previous year, whereas the Ag grade reduced by 33%.

Reserves in the Yauli unit fell by 8% over the prior year, grades in general reduced
by around 15% due to the precision obtained in the representation of the internal
dilution in the volumes to be mined, with the software generation of mining areas.

Reserves at the Chungar unit fell by 20% over the previous year, due to a reduction
in total resources measured and indicated, and a detailed exclusion of zones that
50/51 2 0 1 8 A N N U A L R E P O R T

Reserves per mining unit are inviable for mining. Grades reduced due to the same internal dilution effect Proven and probable mineral reserves per mining unit
as Yauli.
GRADES FINES

-8%
Yauli
Reserves at the Cerro de Pasco unit fell 86% from the previous year. Adjustment
were primarily due to the reclassification of almost all reserves to the inferred
resources category, which generated a reduction of 13.4 million MT, until these
PROVEN AND
PROBABLE
ORE
MILLIONS
OF MT
Zn
%
PB
%
Cu
%
Ag
oz/TM
Zn
Millions
Pb
Millions
Cu
Millions
Ag
Millions
of MT of MT of MT of Oz

-20% are confirmed with certainty. This reclassification is due to the fact that currently RESERVES
the Cerro de Pasco mine is in the adaptation process to Glencore procedures and
Yauli 21.5 4.5 0.7 0.1 2.7 972 157 21 59
Chungar standards in the resources area. When this process has finalized, reserves will be
estimated. For the purposes of this report, reserves in the sulfides stockpile were Proven 10.4 4.9 0.7 0.1 2.6 507 73 10 27
-86%
Cerro de Pasco
reported. Probable
Cerro
11.1
2.1
4.2
1.2
0.8
0.6
0.1
-
2.9
0.5
464
25
84
13
11
-
32
1
An increase of 135% over the previous year was observed in the Alpamarca unit,
+135%
Alpamarca
thanks to geological infill drilling works, which raised the certainty of inferred
ore to measured and indicated category, and later classified this as reserve in
Proven
Chungar
2.1
8.3
1.2
4.5
0.6
1.5 0.1
- 0.5
2.2
25
371
13
121 10
- 1
18
economic evaluation. Proven 2.5 4.5 1.3 0.1 2.5 114 34 3 6
-32%
Total Company
Probable 5.8 4.5 1.5 0.1 2.0 256 87 7 12
Alpamarca 2.5 0.9 0.7 0.1 1.3 21 16 2 3
Proven 0.9 0.9 0.7 0.1 1.5 8 6 1 1
Evolution of total mineral reserves- Volcan and subsidiaries (Millions of tons) Probable 1.6 0.8 0.6 0.1 1.2 13 10 2 2
Proven 15.9 4.1 0.8 0.1 2.3 655 126 14 36
GRADES FINES
Probable 18.4 4.0 1.0 0.1 2.5 733 180 21 46
Zn Pb Ag
THOUSANDS Zn PB Cu Ag
Thousands Thousands Millions of
Total 34.3 4.0 0.9 0.1 2.4 1,388 306 35 81
OF MT % % % oz/MT
of MT of MT oz

2010 148,429 3.9 1.2 0.1 3.1 5,715 1,707 453

2011 135,691 3.9 1.1 0.1 3.2 5,238 1,520 438
2012 109,673 3.7 1.0 0.1 3.2 4,112 1,147 355
2013 69,417 3.9 1 .0 0.1 4.0 2,728 676 276
2014 73,699 3.7 0.9 0.1 3.8 2,726 674 279
2015 76,891 3.7 0.9 0.1 3.5 2,840 701 267
2016 65,242 3.9 0.9 0.1 3.3 2,536 614 215
2017 50,296 4.1 0.9 0.2 3.6 2,039 465 179
2018 34,300 4.0 0.9 0.1 2.4 1,388 306 81
52/53 2 0 1 8 A N N U A L R E P O R T

Ore Reserves by Mining Method Measured,* Indicated and Inferred Resources

GRADES GRADES FINES

MILLIONS Zn PB Cu Ag MILLIONS Zn PB Cu Ag
Zn Pb Cu Ag
thousands thousands thousands Millions of
OF MT % % % Oz/MT OF MT % % % Oz/MT
of MT of MT of MT oz

Underground Mines 29.8 4.5 0.9 0.1 2.6 Yauli 83 5.3 0.9 0.2 3.3 4,424 721 125 272
San Cristóbal 11.6 5.2 0.8 0.1 3.2 Measured 29 6.3 1 0.1 3.5 1,815 288 38 102
Carahuacra 2.7 4.2 0.4 - 1.8 Indicated 28 5.2 0.9 0.2 3.4 1,452 242 50 94
Yauli
Andaychagua 5.8 3.3 0.8 0.1 2.8 Inferred 26 4.4 0.7 0.1 2.9 1,157 191 36 76
Ticlio 1.5 4.3 0.9 0.1 0.9 Cerro 156.1 2.1 0.8 - 2.5 3,259 1245 - 386
Measured 2.1 1.2 0.6 - 0.5 25 13 - 1
Animón 7.4 4.9 1.4 0.1 1.7
Chungar Inferred 154 2.1 0.8 - 2.5 3,234 1232 - 385
Islay 0.9 1.3 0.6 - 5.7
Chungar 30.9 5.2 1.9 0.1 2.9 1,597 577 45 90
Open Pits 2.5 0.9 0.7 0.1 1.3 Measured 5.2 7.2 2.2 0.2 4.9 372 115 10 25
Alpamarca Alpamarca 2.5 0.9 0.7 0.1 1.3 Indicated 9.5 6 1.9 0.2 2.9 569 181 19 28
Stockpiles 2.1 1.2 0.6 0.0 0.5 Inferred 16.2 4 1.7 0.1 2.3 656 281 16 37
Cerro SP Pyrite Sulfides 2.1 1.2 0.6 - 0.5 Alpamarca 4 1.1 0.8 0.1 1.8 44 33 2 7
Total Reserves 34.3 4.0 0.9 0.1 2.4 Measured 1 1 0.7 0.1 1.6 10 7 1 2
Indicated 2.4 1.1 0.9 0.1 1.7 27 21 1 4
Inferred 0.6 1.2 0.9 0.1 2.4 7 5 - 1
Romina 8.3 5.3 2.7 0.1 1.3 436 224 8 11
Indicated 5.5 6.1 2.9 0.1 1.5 336 160 6 8
Inferred 2.8 3.6 2.3 0.1 0.8 101 64 3 2
Palma 14.5 5.3 0.6 - 0.7 764 92 - 10
Indicated 9.6 5 0.7 - 0.7 480 67 - 7
Inferred 4.9 5.8 0.5 - 0.7 284 25 - 3
La Tapada 7.7 3.4 1.3 - 1.2 262 100 - 9
Inferred 7.7 3.4 1.3 - 1.2 262 100 - 9
Rondoní 60.5 - - 0.5 - - - 323 -
Medidos 18.4 - - 0.5 - - - 92 -
Indicated 34.3 - - 0.6 - - - 192 -
Inferred 7.8 - - 0.5 - - - 39 -
Santa Bárbara 140.2 - - - - - - - -
Inferred 140.2 - - 0.4 - - - 561 -
Measured 55.7 4 0.8 0.3 2.3 2,222 423 141 130
Indicated 89.3 3.2 0.8 0.3 1.6 2,864 670 268 141
Inferred 360.2 1.6 0.5 0.2 1.4 5,701 1,899 656 515
Total
505.2 2.1 0.6 0.2 1.6 10,787 2,992 1,065 785
Resources
*The measured and indicated resources reported include resources modified to generate reserves.
54/55 2 0 1 8 A N N U A L R E P O R T

qMINERAL RESOURCES
A cut-off grade is Inferred Resources by Mining Method
used for reporting The resources presented in the estimate from December 31, 2018, includes the GRADES
resources that give rise to reserves. This resource reporting method differs from the
mineral resources method used by Volcan in previous estimates, which exclude resources that gave BY MINING METHOD MILLIONS OF MT Zn % PB % Cu % Ag Oz/MT
to ensure that rise to reserves. Underground mines 42.2 4.3 1.1 0.1 2.7
mineralized material Both forms of reporting resources are accepted by the JORC code, as long as the
San Cristóbal 13.1 4.8 0.8 0.2 3
Carahuacra 3.4 6.7 1 0.1 3.7
with no economic method used is clearly established. This new reporting method is adopted to be Yauli
Andaychagua 4.7 4.1 0.7 0.1 4.2
interest is eliminated aligned with the reporting methodology used by Glencore.
Ticlio 4.8 2.2 0.5 0.1 1
A cut-off grade is used for reporting mineral resources to ensure that mineralized Animón 13.3 4.7 2 0.1 2.1
Chungar
material with no economic interest is eliminated. Islay 2.9 1 0.5 - 3.5
Open Pit 154.6 2.1 0.8 - 2.5
Such resources are an important indicator of the capacity for growth and the future Cerro Raúl Rojas 154 2.1 0.8 - 2.5
sustainability of operations. A significant portion of these resources will become Alpamarca Alpamarca 0.6 1.2 0.9 0.1 2.4
reserves in the short and medium term.
Stockpiles 163.4 0.4 0.1 0.4 0.1
The inferred resources of polymetallic mines represent 55% of the total and projects Palma Palma 4.9 5.8 0.5 - 0.7
45% of the 360.2 million MT. Romina Puajanca 2.8 3.6 2.3 0.1 0.8
La Tapada La Tapada 7.7 3.4 1.3 - 1.2
Santa Bárbara Santa Bárbara 140.2 - - 0.4 -
Measured and Indicated Mineral Resources by Mining Method Rondoní Rondoní 7.8 - - 0.5 -
Total Inferred Resources 360.2 1.6 0.5 0.2 1.4
GRADES

BY MINING METHOD MILLIONS OF MT Zn % PB % Cu % Ag Oz/TM

Distribution of inferred resources
Underground Mines 71.7 5.9 1.2 0.2 3.5
San Cristóbal 33.2 6.5 1 .0 0.2 4 .0 MILLIONS
% %
OF MT
Carahuacra 6.6 6.9 0.7 0.1 2.7
Yauli Yauli 26 7
Andaychagua 9.3 4.1 0.9 0.1 3.8
Ticlio 7.9 3.7 0.8 0.1 1.1 Polymetallic Chungar 16.2 4
55
Animón 11.9 7.6 2.3 0.2 2.9 mines Cerro 154 43
Chungar
Islay 2.8 1.5 0.7 - 7 .0 Alpamarca 0.6 -
Open Pit 3.4 1.1 0.8 0.1 1.7 Palma 4.9 1
Alpamarca Alpamarca 3.4 1.1 0.8 0.1 1.7 Romina 2.8 1
Stockpiles 2.1 1.2 0.6 - 0.5 Projects La Tapada 7.7 2 45
SP Sulfuros Piritas 2.1 1.2 0.6 - 0.5 Santa Bárbara 140.2 39
Projects 67.8 1.2 0.3 0.4 0.2 Rondoní 7.8 2
Palma Palma 9.6 5 .0 0.7 - 0.7 Total Inferred Resources 360.2 100 100
Romina Puajanca 5.5 6.1 2.9 0.1 1.5
Rondoní Rondoní 52.7 - - 0.5 -
Total 145 3.5 0.8 0.3 1.9
*The measured and indicated resources reported include resources modified to generate reserves.
56/57 2 0 1 8 A N N U A L R E P O R T

07.
MINING OPERATIONS

Volcan mining operations are located in the central highlands of Peru. This region Volcan mining
is particularly propitious for mining due to its geological characteristics, proximity
to Lima, and easy access to principal highways. operations are
located in the central
Volcan has five operating units: Yauli, Chungar, Cerro de Pasco, Alpamarca and the
Pasco oxides plant. Together, they have nine underground mines, three open pits, highlands of Peru
seven concentrator plants with a treatment capacity of 21,900 tpd and a lixiviation
plant of 2,500 tpd. The composition of each unit is detailed below:

Operating units

Yauli Cerro de Pasco Óxidos de Pasco

1 2 3 4 5
Chungar Alpamarca
58/59 2 0 1 8 A N N U A L R E P O R T

Operating Units, mines and plants Treated tons reduced from 8.3 million in 2017 to 8.1 million in 2018, mainly due Treated tons reduced
to stoppages in the Animón (24 days), Islay (22 days), San Cristóbal (12 days),
EXPLORATION Carahuacra (15 days), Andaychagua (5 days) and Ticlio (5 days) operations due to from 8.3 million in
safety practices implemented. Mineral quality was prioritized in all Volcan mines
MINES PLANTS AND EXTRACTION
CONC* 2017 to 8.1 million
and sulfide stockpile treatment in the Cerro de Pasco mine continued.
UNIT NAME TYPE STATUS NAME TYPE NUMBER
Hectares
(000)
in 2018, mainly
In 2018, average ore grades for Volcan Consolidated were 3.83% for zinc, 0.78% due to stoppages
San Cristóbal Victoria for lead, 0.12% for copper and 2.93 oz of silver per ton, similar to 2017 grades.
Andaychagua Underground Mahr Túnel Concentrator operations due to
Active
Yauli Ticlio Mines Andaychagua 144 22 safety practices
Evolution of Treated Tonnage (millions of tons)
Carahuacra implemented
Carahuacra Norte Open Pits Suspended
Animón Underground Active Animón Concentrator
Chungar 12 14 2014
Islay Mines
7.4
Mina Underground 2015
Paragsha Concentrator
Subterránea Mines 7.9
Cerro de
Raúl Rojas Open Pits Suspended San Expedito Concentrator 29 18 2016
Pasco 7.7
Underground
Vinchos 2017
Mines
8.3
Underground
Río Palanga Suspended Alpamarca Concentrator 2018
Alpamarca Mines 28 19 8.1
Alpamarca Open Pits Active
Óxidos de Yauli Chungar Cerro de Pasco Óxidos de Pasco Alpamarca
Stockpiles Stockpiles Active Óxidos Lixiviation 1 0.1
Pasco
Greenfield Explorations 652 294
Total Concessions 866 367
*As of December 31, 2018, Volcan Compañía Minera S.A.A. and subsidiaries have a total of 866 mining concessions covering 367 thousand hectares of surface extension,
geographically located in the central highlands of Peru. Volcan has complied with the obligation to pay Currency Dues for its mining concessions in accordance with articles
38 and 39 of the Unique Text of the General Mining Law approved by Supreme Decree N° 014-92-EM.
60/61 2 0 1 8 A N N U A L R E P O R T

In terms of fines, in 2018 the Company produced 241,100 tons of zinc fines, Evolution of Fines Production Volcan Consolidated

241.1
47,200 tons of lead fines, 4,600 tons of copper fines, 17.0 million ounces of silver,
and 11,600 ounces of gold. These figures represent reductions of 5.5% in zinc,
thousand tons of zinc fines 7.9% in lead, 14% in copper and 1.8% in silver compared to 2017, mainly due to
24.8
stoppages in mine operations due to safety issues.
22.5 22.0
47.2
thousand tons of lead fines Evolution of Average Grades Volcan Consolidated 281 285 273 17.3 17.0

255
4.6
thousand tons of copper fines
2014
4.4
57 60 52 51
241

47
3.8
0.9 3 4 5 5 5
17.0
millions ounces of silver
0.1
2014 2015 2016 2017 2018
2015
4.4 Ag (Millions of oz) Zn (000 FMT) Pb (000 FMT) Cu (000 FMT)

11.6
million ounces of gold 0.1
1.0
4.2

2016
4.4
3.9
0.9
0.1

2017
3.9
3.0
0.8
0.1

2018
3.8
2.9
0.8
0.1

% Polymetallic Zn oz Ag/MT % Polymetallic Pb % Polymetallic Cu

62/63 2 0 1 8 A N N U A L R E P O R T

qYAULI UEA
Zn
Yauli UEA is located in the Junín Region, 40 kilometers from the city of La Oroya
and 170 kilometers from Lima, and it is accessible by road and rail. 4.43% 4.91%

Planta de Óxidos PASCO There are currently four underground mines in operation: San Cristóbal,
Carahuacra, Andaychagua and Ticlio, where extracted ore is treated in three
2017
Ag
2018

ÓXIDOS concentrator plants: Victoria, Mahr Tunnel and Andaychagua, with a total installed 2.52 2.82
Raúl Rojas capacity of 11,400 tpd.
DE PASCO CERRO 2017 oz/MT
2018
DE PASCO In 2018, the total volume of ore processed at the three concentrator plants was 3.2 Pb
million tons, which represents 40% of Volcan’s consolidated treated ore. There was
a significant increase in head grades in 2018, with 4.91% Zn, 0.69% Pb, 0.18% 0.60% 0.69%
Cu and 2.82 oz Ag/MT in comparison with 2017 with 4.43% Zn, 0.6% Pb, 0.16% 2017 2018
CHUNGAR
LIMA Lago Junín
Cu and 2.52 oz Ag/MT, as a consequence of the quality control strategy with the
reduction of sections.

Production of silver fines totaled 7.8 million ounces, an increase of 1.4% from
Cu

0.16
2017
0.18%
2018
Río Pallanga
2017; zinc fines production was 146,600 tons, a 0.3% increase; and lead fines
production increased 5.9% to 19,100 tons, despite the safety stoppages in the
San Cristóbal (12 days), Carahuacra (15 days), Andaychagua (5 days) and Ticlio (5
days) mines.

JUNÍN
ALPAMARCA

Carahuacra
San Cristóbal Andaychagua

YAULI
64/65 2 0 1 8 A N N U A L R E P O R T

Evolution of Treated Tonnage and Average Grades Yauli Evolution of Fines Production Yauli

2014 12.9
4.5 11.5 11.6
3.5
0.7
0.1 7.7 7.8
3.8 175 165
158 Silver
7.8 millions of oz
2015
146 147 Zinc
4.8
3.7 147 thousand FMT
0.7 22 25 3 24 3 18 3 19 3 Lead
0.2 2
4.0 19 thousand FMT
2014 2015 2016 2017 2018 Copper
2016 thousand FMT
4.9 Zn (000 FMT) Pb (000 FMT) Cu (000 FMT) Ag (millions of oz)
3.7
0.8
0.2
3.7
Yauli Production by Mine
2017
TREATED
4.4 TONS
ZN GRADE PB GRADE CU GRADE AG GRADE
2.5
(%) (%) (%) (OZ/MT)
(000 MT)
0.6
0.2
2017 2018 2017 2018 2017 2018 2017 2018 2017 2018

3.6 San Cristóbal 1,161 1,098 4.9 5.4 0.5 0.5 0.2 0.2 2.3 2.7
2018 Andaychagua 963 854 3.8 4.3 0.7 1.0 0.1 0.1 3.8 4.3
4.9 Ticlio 385 350 4.7 5.2 1.2 1.3 0.5 0.3 1.7 1.5
2.8 Carahuacra 950 857 4.6 4.9 0.3 0.3 0.1 0.1 1.8 2
0.7
0.2 Carahuacra Norte Pit 105 44 1.9 2.1 0.4 0.4 - - 2.3 2.2
3.2 million MT 3.2 Total Yauli * 3,585 3,212 4.4 4.9 0.6 0.7 0.2 0.2 2.5 2.8
treated
% Zn oz Ag / MT %Pb % Cu Millions of MT Treated * 20,000 MT and 8,000 MT bought from third parties were processed in 2017 and 2018, respectively.
66/67
MINES
Efficiencies in progress have continued to improve in 2018, aimed at increasing
mine development and preparation, both in terms of depth and lateral
developments. The development sequence has been coordinated with infill
drilling, with a focus on the sustainability of the short-term plan, also aimed at the
medium- and long-term plan.
In 2018, significant priority has been given to programs for raise borer chimneys,
designed to improve coverage and ventilation for operations and comply with
current regulations and standards in mine ventilation.
2 0 1 8 A N N U A L R E P O R T
Implementation of the Personnel and Equipment Monitoring System (Newtrax) The Company
in the Carahuacra mine has been strengthened during the year. This system will
enable, in real time: (i) detection of a worker who has fallen, (ii) location and implemented a
traceability of personnel and mobile equipment, (iii) emission of an evacuation strategic reduction of
alert, (iv) emission of a vehicle proximity alert, (v) detection of carbon monoxide,
temperature and humidity, and (vi) oversight of production and productivity. sections in mineral
advancements and
The Company also implemented a strategic reduction of sections in mineral
advancements and production pits, to improve the quality of the ore. production pits, to
improve the quality
San Cristóbal Mine
In 2018, the head grades increased by 10.0% and 17.4% in Zn and Ag, respectively,
of the ore
as a result of measures to improve ore quality.
The operating strategy for production continued, increasing the volume of the
sublevel stopping mining method and reducing cut and fill.
Despite a 5.4% lower production of tons of ore, results of Zn and Ag fines
production were higher than 2017, with 4.4% and 12.4%, respectively.
Andaychagua Mine
In 2018, production was primarily from the Andaychagua vein at depths,
production began through the sublevel stopping method in the Adriana vein,
with mostly Zn, and the Prosperidad 1 and Prosperidad Techo veins, consolidating
the aforementioned mining method.
Exploration focused on the Lorena and Vanesa veins, with favorable results in Zn.
Pump system project works culminated at level 1200, with a 180 l/s capacity that
guarantees the depth of the Andaychagua vein and the other veins mentioned.
Although there was an 11.3% lower production of tons of ore when compared with
2017, Zn and Pb fines production was higher, with 2.9% and 41.7%, respectively.
Ticlio Mine
In 2018, construction of the main pump system station, Level 11 west zone, with a
200 l/s capacity, guaranteeing the depth of the mine in the western part. The slope
of the sludge deposit (old tailings dam) has been strengthened.
The 30% increase in DDH drilling in 2018 compared to 2017 has led to the
discovery of new veins such as Borrachitos, Contacto, and the reinterpretation of
existing veins.
68/69 2 0 1 8 A N N U A L R E P O R T

Production in tons of ore at Ticlio fell by 9.1% over 2017, and Zn fines production Victoria Plant
increased by 0.9%, Pb increased by 4.6% and Ag decreased by 17.1%. In 2018, the processing capacity of the Victoria concentrator plant was maintained
at 5,200 tpd.
Carahuacra Mine
Developments and preparations in 2018 increased by 7% and 2%, respectively, The 1,000-MT fines hopper has been implemented, guaranteeing greater
to ensure the short-term sustainability of the operation. This involved the flexibility in maintenance of the primary crusher.
development of main ramps, raise borer chimneys, bypasses, etc.
The implementation process of the online expert system began in 2018 for the
Ag head grade also increased 13.5% over 2017, which contributes to a first rougher cell, which automates the dosage of reagents (ZnSO4 and MIBC)
greater extracted ore quality, controlling dilution in the sublevel stopping pits, through an image processing chamber.
implementing mass blasting, improving productivity and lower equipment
exposure. Copper flotation in the bulk circuit was improved, reducing the dosage of
depressors in milling. Zinc recovery was 92.7%, lead was 78.6%, copper 53.4%
Carahuacra Norte Pit and silver was 83.3%, higher than 2017.
The Carahuacra Norte Pit was halted in 2018; however, 43,000 tons from the
stockpile were treated, obtaining a fines production of 700 tons of zinc, 100 tons
of lead and 66,000 ounces of silver.

CONCENTRATE PLANTS

In 2018, the metallurgical performance of the Tauli unit was higher than 2017. In
2018, the three concentrate plants made an average recovery of 92.9% for zinc,
86.6% for lead, 50.0% in copper and 86.8% for silver, better than 2017, where
recoveries were 92.0% for zinc, 84.6% for lead, 52.2% in copper and 85.8% for
silver.

Treated Tonnage at Yauli, by Concentrate Plant

ZN PB CU
TREATED TONS
CONCENTRATE CONCENTRATE CONCENTRATE
(000 MT)
(000 MT) (000 MT) (000 MT)

2017 2018 2017 2018 2017 2018 2017 2018

Victoria 1,838 1,768 166 177 14 14 5 8

Andaychagua 1,032 982 69 73 15 18 - 1
Mahr Túnel 715 462 55 39 12 9 7 3
Total Yauli 3,585 3,212 290 289 41 41 12 12
70/71 2 0 1 8 A N N U A L R E P O R T

Andaychagua Plant
The Andaychagua plant has a treatment capacity of 2,950 tpd.

In 2018, mill 1 began implementation, which produces greater fines content

given that the current cut size is 64% below 75 microns (um) as a result of primary
milling to flotation. The goal is to double-classify hydrocyclones and achieve a cut
size of 72% below 75 microns that feeds into flotation, and to recover a greater
amount of silver in the lead.

In 2018, zinc recovery was 92.0%, lead recovery was 90.0%, and silver recovery
Zn
was 90.3%, whereas in 2017, zinc recovery was 90.5%, lead recovery was 84.8%,
90.5% 92% and silver recovery was 89.3%.
2017 2018
Mahr Túnel Plant
Pb The Mahr Túnel plant has a treatment capacity of 2,750 tpd. During 2018,
operations continued with application of new flotation reagents and the
84.8% 90% elimination of others to maintain or reduce costs.
2017 2018
Ag During the year, the Mahr Túnel concentrator plant maintained significant
metallurgical efficiency, with zinc recovery at 95.5%, lead recovery at 92.8%,
89.3% 90.3% copper at 71.0 %, and silver at 87.4% in 2018, compared to 2017, with zinc at
2017 2018 91.9%, lead at 84.7% and silver 83.6%.

In addition, final tailings classification efficiency continued, raising coarse

separation from 45% to 54%; this reduces tailings volume deposited and
lengthens the useful life of Tailings Dam 6.
72/73 2 0 1 8 A N N U A L R E P O R T

qCHUNGAR UEA Chungar UEA is

Chungar UEA is located in the Pasco Region, 219 kilometers east of Lima. It consists of two

PASCO
consists of two underground mines, Animón and Islay, and a concentrator plant underground mines,
also called Animón.
Planta de Óxidos
Animón and Islay,
In 2018, the total volume of ore processed was 1.7 million tons, which represents and a concentrator
ÓXIDOS 21% of Volcan’s consolidated treated ore. In 2018, treatment was 8.1% less than
DE PASCO Raúl Rojas plant also called
CERRO
DE PASCO Evolution of Treated Tonnage and Average Grades Chungar Animón

CHUNGAR 2014

LIMA Lago Junín

0.2
1.5
3.6
5.7

Río Pallanga 2.0

2015
5.0
3.0

JUNÍN
ALPAMARCA 0.1
1.4
1.9

2016
5.1
2.5
1.1
0.1
2.0

2017
Carahuacra 5.2
Andaychagua 2.4
San Cristóbal 1.3
0.2
1.8
YAULI 2018
4.8
2.8
1.2
0.1
1.7

% Zn oz Ag/ MT %Pb % Cu Millions of MT Treated

74/75 2 0 1 8 A N N U A L R E P O R T

2017, primarily due to stoppages in the Animón Mine (24 days) and Islay Mine
(22 days) in June due to safety measures implemented.
THE REDUCTION OF ZINC
In 2018, ore treated from the Chungar unit was processed at the Animón Plant FINES WAS DUE TO A LOWER
with grades of 4.80% Zn, 1.18% Pb, 0.13% Cu and 2.84 oz Ag/MT, less than
grades from 2017 of 5.16% Zn, 1.34% Pb, 0.15% Cu and 2.43 oz Ag/MT, due to TREATMENT AND REDUCTION OF
a reduction in geological grades in main zinc veins: Principal, Lourdes and María RESERVES IN THE HIGHER-GRADE
Rosa.
ZINC STRUCTURES SUCH AS
In addition, 5,639 tons of ore were sent from Islay mine to the Alpamarca plant PRINCIPAL, LOURDES AND MARÍA
for a pilot test.
ROSA
In 2018, production of zinc fines fell to 74,900 tons, and silver production 3.9
million ounces, a reduction of 15% and increase of 9%, respectively, compared to
2017. The reduction of zinc fines was due to a lower treatment and reduction of
reserves in the higher-grade zinc structures such as Principal, Lourdes and María
Rosa.

Evolution of Fines Production Chungar

5.9
4.6
Silver 4.1 3.9
104 3.6
3.9 millions oz 89
Zinc 75
96
75 thousand FMT 88
25 23 22
20 18
Lead
18 thousand FMT 1 1 1 2 2
Cooper 2014 2015 2016 2017 2018
2 thousand FMT
Zn (000 MT) Pb (000 MT) Cu (000 MT) Ag (millions of oz)

Chungar Production, By Mine

TREATED TONS ZN GRADE PB GRADE CU GRADE AG GRADE

(000 MT) (%) (%) (%) (OZ/MT)

2017 2018 2017 2018 2017 2018 2017 2018 2017 2018

Animón 1,517 1,387 6.0 5.6 1.5 1.3 0.2 0.1 1.7 2.2
Islay 321 303 1.2 1.2 0.7 0.7 0.1 0.1 5.8 5.7
Total Chungar 1,838 1,690 5.2 4.8 1.3 1.2 0.2 0.1 2.4 2.8
76/77 2 0 1 8 A N N U A L R E P O R T

MINES In 2018, the Esperanza and Montenegro pump systems were reinforced to
guarantee reliability of the main pump system for the Animón mine. Construction
The Chungar UEA has two underground mines: the Animón mine, with a 4,140 of the main raise borer chimneys was also completed, thereby guaranteeing the
tpd production capacity, and the Islay mine, with a 1,500 tpd production capacity. ventilation coverage required.
Tonnage produced by these two mines is treated by the Animón plant.
The slickline project was implemented to transport shotcrete inside the mine and
Animón Mine optimize support costs.
Due to the frequency of rockfall incidents in the first quarter, the Company made
the firm decision to halt mine activities between May and June for 24 days, to Islay Mine
reinforce operations discipline and safe production. Due to the frequency of rockfall incidents in the first quarter, the Company made
the firm decision to halt mine activities between May and June for 22 days, to
In 2018, the Animón mine consolidated its production at 4,140 tpd, with a better reinforce operations discipline and safe production.
performance due to the established plan to develop and prepare the mine in the
lateral zone, thereby continuing to deepen the mine. Construction of the pump system infrastructure inside the mine on level 545 began,
with a capacity of 300 l/s, to guarantee the lateral development and deepening of Construction of
the mine. the pump system
infrastructure
In 2018, the Company strengthened its relationship with the community of inside the
Huaychao, its primary strategic partner in the area of influence. mine began,
to guarantee
the lateral
CONCENTRATE PLANT development and
deepening of
the mine
Concentrate Production
TREATMENT ANIMÓN PLANT (000 MT) 2017 2018

Treated Tons 1,838 1,690

Zn Concentrate 160 133
Concentrate Bulk 47 40

Animón Plant
In 2018 treated tonnage at the Animón plant fell 8.1% with respect to the previous
year, owing mainly to a 24-day stoppage at the mine due to safety controls
implemented.

To improve metallurgical indexes and understand metallurgy, the Company

decided to treat ore from the Animón and Islay mines as separate campaigns.

During the year, the Animón concentrate plant maintained significant metallurgical
efficiency, with zinc recovery at 92.3%, lead recovery at 91.0%, copper at 60.1%, and
silver at 82.1%, similar when compared to 2017, with zinc recovery at 92.4%, lead
at 91.0%, copper at 65.1% and silver at 81.3%.
78/79 2 0 1 8 A N N U A L R E P O R T

qALPAMARCA UEA This unit consists

The Alpamarca UEA is located in the Santa Bárbara area of Carhuacayán, Yauli of the Río Pallanga

PASCO
Province, Junín Region, 182 kilometers east of Lima. underground
Planta de Óxidos
This unit, which consists of the Río Pallanga underground mine (temporarily halted), mine (temporarily
Alpamarca open pit, Alpamarca concentrate plant, and the Romina -Puagjanca halted), Alpamarca
ÓXIDOS Raúl Rojas
project, began operations in April 2014.
open pit, Alpamarca
DE PASCO CERRO
DE PASCO The installed capacity of the plant as designed is 2,500 tpd. concentrate plant,
and the Romina -
Puagjanca
CHUNGAR
LIMA Lago Junín

Río Pallanga

JUNÍN
ALPAMARCA

Carahuacra
San Cristóbal Andaychagua

YAULI
80/81 2 0 1 8 A N N U A L R E P O R T

Treated Tonnage and Average Grades Alpamarca In 2018, ore processed in the concentrator plant came from the Alpamarca open pit
and stockpiles. Treatment totaled 948,000 tons, with average grades of 1.05% Zn,
0.72% Pb, and 1.73 oz. Ag/MT.
2014
4.0 Fines Production Alpamarca
1.3
0.8
0.6
11.7
2015
3.3 9.8
1.2 8.7 8.4
0.7 7.0 7.2
0.9 5.8 6.2 Zinc
5.9
8.4 thousand FMT
2016 4.0 2.7 Lead
2.4 2.0 1.8
1.2 1.5 thousand FMT
0.8 2.2
0.8 0.6 0.5 0.4 Silver
0.9 0.1
1.5 milllions of oz
2017 2014 2015 2016 2017 2018 Cooper
2.1 thousand FMT
1.4 Zn (000 MT) Pb (000 MT) Ag (millions of oz) Cu (000 MT)
0.8
1.0
Alpamarca production in 2018 reached 8,390 tons of zinc and 6,230 tons of lead,
2018 decreases of 28.3% and 13.5% respectively compared to 2017. This was due to the
1.7 reduction in head grade treated.
1.0
0.7
0.9 Meanwhile, silver production topped 1.46 million ounces of fines, a 20.6%
decrease from 2017 due to lower head grades.
oz Ag/ MT % Zn %Pb Millions of MT Treated

MINES

Río Pallanga Mine

Progress and production at the underground mine were temporarily suspended.

Alpamarca Mine
Initially, pit production was only considered until May 2018. However, systematic
sampling and fieldwork, including diamond drilling, was able to prolong
production until mid-2019.
82/83 2 0 1 8 A N N U A L R E P O R T

Therefore, in 2018 ore production in the Alpamarca pit reached 438,000 tons
based on removal of 1.93 million tons of overburden, for an average stripping ratio
of 4.40.

CONCENTRATE PLANT

Alpamarca Plant

Concentrate production
TREATMENT ALPAMARCA PLANT (000 MT) 2017 2018

Treated tonnage 958 948

Zn concentrate 22 15
Bulk concentrare 13 10

The Alpamarca concentrate plant processed 948,000 tons of polymetallic ore

In 2018 the from the Alpamarca pit in 2018 and stockpiles. Metallurgical performance at the
Alpamarca Alpamarca plant was strong, with metal recovery rates of 84.6% for zinc, 91.6% for
lead, and 88.7% for silver.
concentrate plant
processed 948,000 This involves an Islay ore campaign between April 18 and 20, treating 5,639 MT,
with the following metallurgical performance: 90.9% for zinc, 93.9% for lead and
tons of polymetallic 87.2% for silver.
ore from the
Alpamarca pit and A total of 953,000 MT were treated in the Alpamarca plant in 2018.

stockpiles
ROMINA - PUAGJANCA PROJECT

In 2018, the Alpamarca UEA developed the Romina project. The Semi-detailed
Environmental Impact Study was approved, enabling exploration works involving
diamond drilling and the construction of an 850-meter exploratory tunnel directed
towards the Puagjanca deposit. The Detailed Environmental Impact Assessment is
under processing for approval, which is expected for the second half of 2020.

Ore from Romina will be treated in the Alpamarca concentrate plant. Processing has
begun to modify its process given that ore from Romina is mineralogically different
than ore currently treated.
84/85 2 0 1 8 A N N U A L R E P O R T

Alpamarca Plant.
86/87 2 0 1 8 A N N U A L R E P O R T

qCERRO DE PASCO UEA

The Cerro de Pasco UEA is located in the Pasco Region approximately 295

PASCO
kilometers from Lima and can be reached via the Central Highway.

Planta de Óxidos
During 2018, 1.3 million tons of stockpiled ore were processed at the Paragsha-
San Expedito plant, with ore grades of 1.94% Zn, 0.54% Pb, 0.02% Cu, and 0.58 oz
ÓXIDOS Raúl Rojas
Ag/MT. This ore corresponds to marginal ore from stripping from the Raúl Rojas pit.
1.3 million tons
DE PASCO CERRO of stockpiled ore
DE PASCO Evolution of Treated Tonnage and Average Grades Cerro de Pasco were processed at
the Paragsha-
San Expedito plant
CHUNGAR
LIMA
2014
3.3
Lago Junín 2.7
1.1
0.8
Río Pallanga
2015
3.9
3.9
1.5

JUNÍN
ALPAMARCA 0.4

2016
1.0
2.0
0.7
0.2

2017
0.6
1.9
0.5
Carahuacra 1.1
San Cristóbal Andaychagua
2018
0.6
1.9
YAULI 0.5
1.3

oz Ag/ MT % Zn %Pb Millions of MT Treated

88/89 2 0 1 8 A N N U A L R E P O R T

In 2018, fines production totaled 11,200 tons of zinc, 3,700 tons of lead and 0.41 CONCENTRATOR PLANT
million ounces of silver, in comparison with the 2017 results of 9,300 tons of zinc,
3,500 tons of lead and 0.39 million ounces of silver.
Concentrate production
Evolution of Fines Production – Cerro de Pasco TREATMENT SAN EXPEDITO PLANT (000 MT) 2017 2018

Treated tonnage 1,059 1,314

Zn concentrate 22 26
1.9
Bulk concentrare 7 8

1.1 San Expedito/Paragsha Plant

During 2018, the crusher, milling and filtering circuits at the Paragsha concentrator
13 12 0.4 0.4 plant continued to be operational, the Pb circuit at San Expedito was transferred to
0.1 the Paragsha plant and the Zn circuit at San Expedito was expanded.
6 5 9 11
Silver 3 4 The Paragsha-San Expedito plants operated continuously, with treatment of
2
1.5 milllions of oz 1 marginal polymetallic ore from Cerro de Pasco’s Raúl Rojas pit.
Zinc
2014 2015 2016 2017 2018
8.4 thousand FMT Tonnage was progressively raised from 4,000 tpd (August) to 5,000 tpd (December),
Lead due to the implementation of pulp pumps and reactivation of re-milling and ball Tonnage was
Zn (000 MT) Pb (000 MT) Ag (milllions of oz) mills.
6.2 thousand FMT progressively
raised from 4,000
tpd (August)
MINES to 5,000 tpd
(December)
Paragsha Underground Mine
During 2018, the Paragsha underground mine was under temporary
suspension. The mine is maintained in operating conditions, and, as a result of
the implementation of the energy efficiency program and better cost controls,
the energy costs for mine ventilation, compressed air, and water pumping were
reduced.

Raúl Rojas pit ore stockpiles

In 2018, ore stockpiled from the Raúl Rojas pit in previous years was treated.

Vinchos Mine
In 2018, no ore was produced in the Vinchos mine. Operations in this mine are
under temporary suspension.
90/91 2 0 1 8 A N N U A L R E P O R T

qCERRO DE PASCO OXIDES UEA

The Cerro de Pasco oxide plant in the Pasco Region is located approximately 295

PASCO
kilometers from Lima and can be reached via the Central Highway.

Oxides Plant
This operating unit, which includes Volcan’s first lixiviation plant, began operations
in 2014, with full production capacity reached in June 2015.
ÓXIDOS Raúl Rojas
DE PASCO CERRO During 2018, 914,000 tons of stockpiled oxides were processed, with ore grades
of 8.09 oz Ag/MT and 0.19 gr Au/MT.
DE PASCO
Production of silver fines reached 3.4 million ounces, representing a reduction of During 2018,
10% with respect to the 3.7 million ounces in 2017, due to the reduction in the 914,000 tons of
CHUNGAR
LIMA
silver grade in stockpiles. stockpiled oxides
were processed,
Lago Junín
Evolution of Treated Tonnage and Average Grades Oxides
with ore grades
of 8.09 oz Ag/MT
Río Pallanga and 0.19 gr Au/MT
2014
10.9
0.1

JUNÍN
ALPAMARCA 0.2

2015
11.0
0.3
0.7

2016
10.7
0.2
0.9
Carahuacra 2017
San Cristóbal Andaychagua 9.6
0.1
0.9

YAULI 2018
8.1
0.2
0.9

oz Ag/ MT gr Au/MT Millions of MT Treated

92/93 2 0 1 8 A N N U A L R E P O R T

In situ oxide reserves and resources were updated for the production design south
of the Raúl Rojas pit.
DURING THE YEAR, THE OXIDES
In 2018, operations began in the southern part for in situ oxides recovery to feed PLANT MAINTAINED SIGNIFICANT
ore to the oxides plant in the upcoming years.
METALLURGICAL EFFICIENCY,
Evolution of Fines Production Oxides WITH SILVER RECOVERY AT 45.3%
AND GOLD RECOVERY AT 72.1%
5.3

4.1 4.1
3.6 3.7

3.3 3.4
2.8
1.1
Silver
3.4 milllions of oz 0.7
Gold 2014 2015 2016 2017 2018
4.1 thousands of oz
Ag (millions of oz) Au (000 oz)

OXIDES PLANT

In 2018, an average processing rate of 2,500 tpd has been maintained.

During the year, the oxides plant maintained significant metallurgical efficiency,
with silver recovery at 45.3% and gold recovery at 72.1%, compared to 2017, with
silver recovery at 44.3% and gold at 69.5.

Doré Production
OXIDES PLANT TREATMENT 2017 2018

Treated Tons (000 MT) 872 914

Dore bars (000 kg) 142 109
94/95 2 0 1 8 A N N U A L R E P O R T

08.
EXPLORATIONS AND GROWTH

qEXPLORATIONS

In 2018, Volcan carried out exploration in three advanced projects: Romina,

Carhuacayán, and Palma, as well as two projects in the initial stage: Zoraida and In all,
Shuco. In all, 54,211 meters of diamond-drilled boreholes were completed. 54,211
meters of
Progress Regional Explorations (mts) diamond-drilled
boreholes were
completed
2016 2017 2018

Carhuacayán 1,602 22,904 14,110

Romina II 5,125 10,688 12,560
Palma - 7,920 21,591
Zoraida - - 4,966
Shuco - - 984
Santa Bárbara - 9,087 -
Alpamarca Norte - 10,409 -
Chumpe - 875 -
Diamond Drill Hole (DDH) 6,727 61,883 54,211
Source: Volcan Cía Minera
96/97 2 0 1 8 A N N U A L R E P O R T

Romina is Romina is noteworthy among the advanced projects, where significant Progress on Exploration Projects (Puagjanca is part of Romina)
mineralization has been defined, specifically in the Puagjanca body with a
noteworthy among significant zinc, lead and silver content. In addition, a significant mineralization
the advanced has been discovered near Puagjanca.

projects, where On the other hand, In Carhuacayán, a significant mineralization was defined in
significant the La Tapada body (Zn-Pb-Ag), not just beneath the old pit, but also on other 05. Mine development

Advanced projects
levels of this older mine. Both projects, Romina and Carhuacayán, will produce
mineralization ore to be treated at the Alpamarca concentrate plant. These are estimated to begin Positive scoping
has been defined, production in 2020.
04. Pre feasibility &
Puagjanca
specifically in the At Palma, a greenfield project, a significant mineralization of zinc, lead and silver
reserve generation Inferred resourced
Puagjanca body has been defined, sufficient to begin a mining project separate from the other Romina II
units. The pre-feasibility stage will be carried out in 2019, leaving a massive 03. Delineation
with a significant geological potential yet to be discovered. of resources
Palma
Carhuacayán
Santa Bárbara
Discovering
zinc, lead and silver
content At Zoraida, a geological reinterpretation of the project is underway, revealing a

Prospects (generative)
02. Initial Brownfield Yauli
significant mineralization in zinc, lead and silver strata. Production at Zoraida will Zoraida Rica Cerreña
exploration
be treated in the Andaychagua concentrate plant. Alpamarca N
Drilling targets
Finally, Shuco as a prospect was thrown out, because its results did not meet Vinchos
Volcan expectations. 01. Geological Romina Cental Iray
prospecting Garhuashmina Yacucancha Puy Puy Generative budget

AG-PB-ZN CU
98/99
qGENERATING NEW PROJECTS
By the close of 2018, the Santa Bárbara and Garhuasmina – Yacucancha mining
prospects were identified for exploration in 2019, and will subsequently be
confirmed if identified to move on to the next phase.
Santa Bárbara Prospect
Santa Bárbara is located 2 km east of the old Carhuacayán mine district and 20 km
east of Alpamarca mine. RTZ explored this copper and gold porphyry project from
1990 to 2000. In the most recent reconnaissance work undertaken by Volcan,
evidence was found of a larger lithocap that could increase the potential of the
project.
Diamond drilling at the mine in 2017 totaled 9,085 meters. The first goal was to
drill twin boreholes to confirm the finding from the 1990s. Later, a larger grid was
made to increase the project potential, obtaining positive results.
The project was largely on hold during 2018, but towards the end of the year,
laboratory metallurgical testing showed positive results. Preliminary studies on
a conceptual level are currently being run to determine the project's economic
viability.
Garhuasmina – Yacucancha Prospect
Located 10 km east of the Cerro de Pasco mine, this prospect is in the initial
stages. It is a zinc, lead and silver polymetallic mineralization project still in the
environmental permitting phase. Permits should be ready in late 2019.
POST-DISCOVERY DEVELOPMENT
The polymetallic project portfolio was evaluated in 2018, prioritizing those with
the most economic potential. Romina and Carhuacayán were selected due to their
proximity to the Alpamarca concentrate plant, and Palma was selected for its major
potential.
Romina Project
Located in the Pacaraos District, 15 km west of Alpamarca Mine. It is a zinc, lead
and silver polymetallic mineralization that outcrops in the form of replacement
bodies.
The project is in the advanced exploration phase; the Puagjanca sector is the most
advanced in terms of development. Initial explorations were conducted between
2008 and 2012 by Votorantin Metais and later by Milpo, who completed 13,263
meters of diamond drilling in 43 boreholes.
2 0 1 8 A N N U A L R E P O R T
In 2017, an infill drilling program of 9,572 meters was completed in 27 boreholes In 2019, a mining
on the Puagjanca body to refine the geological model and define the category of
the resources. technical-economical
study will be
In 2018, an additional infill drilling program of 5,830 meters was completed in
33 boreholes on the upper part of the Puagjanca body, including the surface. The conducted on a
results were very positive, which refined the geological model and increased the feasibility level,
resource base.
considering the
In addition, after 6,729 meters of diamond drilling, significant mineralized bodies studies conducted in
and strata were discovered in the Andrea, Ariana, Esperanza and Santa zones.
These are found in the vicinity of the Puagjanca body and significantly increase
prior years, as well as
the project potential. the results obtained
A trade-off study was also conducted by REDCO Mining Consultants on a pre-
in the last drilling
feasibility level to determine the production method for the Puagjanca body. The campaign in 2018,
company Klohn Crippen Berger initiated feasibility studies for the surface facilities where the resources
and infrastructure.
model was
In 2019, a mining technical-economical study will be conducted on a feasibility
re-categorized and
level, considering the studies conducted in prior years, as well as the results
obtained in the last drilling campaign in 2018, where the resources model was updated
re-categorized and updated. The feasibility study will provide relevant information
for the presentation of the Detailed Environmental Impact Study (EISd). Finally, a
7,000-meter program will be implemented in the Andrea, Adriana, Esperanza and
Santa bodies to define the morphology of the mineralization.
Carhuacayán Project
Situated 20 km east of the Alpamarca mine, this is a polymetallic project of zinc,
lead, and silver located in a mountainous area. The mineralization is observed in
veins, breccia bodies, replacement bodies and layers.
In 2017, a 21,811-meter diamond drilling program was completed in the areas
of La Tapada, Candelaria and surroundings. Positive results were obtained, with
significant mineralization primarily in La Tapada. In addition, new possible
exploration zones were defined.
Replacement bodies were found in La Tapada, in an embedded lime block that
had been mined previously. This half-table replacement zone has dimensions that
are more than 500 meters long and 300 meters deep, with a width varying from
30 to 50 meters, located in very significant polymetallic mineralization areas.
In 2018, a program of 14,110 meters of diamond-drilled boreholes were
completed in La Tapada. This was carried out primarily in the old production zone,
100/101 2 0 1 8 A N N U A L R E P O R T

showing significant mineralization in these older levels, defining a continuous

mineralization over the older zone.
THE POLYMETALLIC PROJECT
A study of the scope of the Carhuacayán Project will be conducted in 2019 to PORTFOLIO WAS EVALUATED IN
assess its technical and economic viability on a conceptual level. Additionally, a
4,600-meter drilling program will be carried out with a focus on infill drilling over 2018, PRIORITIZING THOSE WITH
La Tapada. THE MOST ECONOMIC POTENTIAL.
Palma Project ROMINA AND CARHUACAYÁN
Located 60 km southeast of the city of Lima, this project is aimed at extracting WERE SELECTED
volcanogenic massive sulfides (VMS) distributed in mineralized layers of zinc,
lead, and silver.

The first stage of the project involved 17,000 meters of diamond drilling. Drilling
enabled an estimate of inferred resources and identified that the ore is structured
in layers, with optimal potencies and good rock quality, and mineralization open
both at depth and towards the sides.

The second amendment to the semi-detailed EIS was approved by DGAAM in

2017, after which a diamond drilling program of 7,920 meters was carried out
in the upper part of the deposit, confirming the continuity of the mineralization.

In 2018, a program involving 21,591 meters over the area was completed, with
very positive results. The mineralization horizon increased by one kilometer, with
over 600 meters in depth. Currently, the geological model is undergoing updates.

A pre-feasibility study is planned for the second half of 2019 to evaluate different
potential scenarios, considering the updated resource model with DDH performed
in 2018, as well as scope-level studies carried out by Ausenco in 2014.

In 2019, a 7,000-meters diamond drill-hole campaign will be conducted to define

the depth of the deposit and define a new mineralization zone, Santa Lidia, which
could significantly increase the project potential.
102/103 2 0 1 8 A N N U A L R E P O R T

BROWNFIELD EXPLORATION In 2018, more than 23,000 meters of diamond drillholes performed from 2007
to 2014 were reviewed and re-interpreted with new standards. This review has
Andaychagua and Ticlio (Yauli) assisted in defining part of the Zoraida vein and replacement strata with significant
A Brownfield Exploration was undertaken in 2018 in the Yauli unit, with a mineralization of silver, lead and zinc, generating a new geological model with
A Brownfield special emphasis on the Andaychagua mine and the Ticlio mine, to define new high potential.
Exploration was mineralization zones and define the extent of current mines, generating a base to
undertaken in
2018 in the Yauli increase resources and replacement zones. In 2019, 5,000 meters of diamond drillholes over strata and veins in this area
unit, with a are programmed to define the mineralization morphology and more precisely
special The work involved preparation of databases (compilation, standardization and estimate resources.
emphasis on the integration of historic geological data), creation of 3D geological models (lithology,
Andaychagua structural, alterations and mineralogy), defining drilling targets and exploring
mine and the superficially (geological mapping, semi-detailed geochemical and mineralogical qCURRENT OPERATIONS
Ticlio mine, to prospection and geophysical prospection).
define new Yauli
mineralization This work provided the basis for defining several initial targets, both for the Infill drilling campaigns and explorations performed in 2018 were mainly
zones Andaychagua mine and the Ticlio mine. The first stage will involve 10,000 meters focused on defining ore potential, the discovery of new mineralized bodies and
of diamond drilling. structures near operating areas and defining inferred resources to elevate these to
the category of measured and indicated resources.
Zoraida Project (Yauli)
Located 7 km south of the Andaychagua mine, this is primarily a silver project Development of the San Cristóbal mine has defined a continuity on the lateral
with lead and zinc content. Due to its geological characteristics, it may become the mineralization of the Gavilán Pit, which will undergo economic evaluation. On 24,616 m 35,489 m
third polymetallic system in the Yauli dome, after the San Cristóbal mine and the the other hand, at the Andaychagua mine, the geological aspects of the Oyama meters for the meters for
Andaychagua mine. project have been revealed. potential identifying
program inferred resources
The geological evaluations in the metavolcanic sequence associated with
hydrothermal structures have led to the discovery of new veins (Vanessa and 52,345 m meters for raising
Dolores), as well as new extensions in the mineralized bodies of the Andaychagua the inferred resources category to
mine. measured and indicated in the San
Cristóbal, Andaychagua, Carahuacra
In 2018, 112,449 meters of diamond drillholes were carried out, distributed as and Ticlio mines
follows:

Yauli Drilling

METERS DRILLED 2018

POTENTIAL RESOURCES INFILL
MINE (M) (M) DRILLING (M)
TOTAL (M)

San Cristóbal 11,746 13,345 12,535 37,626

Andaychagua 7,540 12,164 13,871 33,574
Ticlio 5,171 1,169 5,301 11,641
Carahuacra 159 8,811 20,638 29,608
Total 24,616 35,489 52,345 112,449
104/105 2 0 1 8 A N N U A L R E P O R T

The results confirmed the depth and lateral continuity of the resources in the main
mineralized structures. The following new resources were determined: (i) in the
Andaychagua mine, new mineralized structures associated with metavolcanic
rock; (ii) in the San Cristóbal mine, increased depth and lateral extension of
mineralization in the Split 658, 658, 722, Ramal floor 722 veins and increased
depth of the San Cristobal vein; (iii) in the Carahuacra mine, increased depth of
the Mary, ML and Diana veins, associated with the formation of mineralized strata
in their intersections with limestone; and (iv) in the Ticlio mine, increased depth of
the Ramal Techo vein, and discoveries of the Borrachitos, Katty and Veta Contacto
veins. The results obtained provide a sound basis for continuing the exploration
program planned for 2019.
Chungar
A brownfield exploration program was initiated towards the east of the lateral
31,114 m 17,229 m extensions of the Animón mine, accompanied by exploration of new structures
meters for meters for to the northeast of the Islay mine. Mapping, geophysics and geochemistry of the
identifying the potential surface will help set the drilling targets for 2020.
inferred resources program
Mine exploration has been focused on the lateral extensions of the operating
34,483 m veins and on identifying new structures and strata with economic potential.
meters aimed at elevating the
certainty of inferred resources to 82,826 meters of diamond drillholes have been performed in the Animón and
measured and indicated resources Islay mines, distributed as indicated below:
Alpamarca
Local exploration at Alpamarca was primarily focused on developing a drilling In total, 8,313
program beneath the pit to elevate the certainty of inferred resources to measured meters were
and indicated resources and to evaluate increasing depth. In all, 8,313 meters drilled in
were drilled. Results have been highly positive, thereby extending the life of mine. Alpamarca
qINORGANIC GROWTH – ACQUISITIONS AND
JOINT VENTURES
As in years past, inorganic development remained a potential pathway for growth,
prioritizing activities in the central highlands. In 2018, the Company continued to
evaluate opportunities for acquiring new projects and mining operations that are
aligned with the corporate strategy.
The Company prioritizes opportunities in the area of influence and the existence
of competitive advantages that will support synergies with the current portfolio.
Projects are evaluated with the goal of maintaining leadership in zinc, lead, and
silver production.

Drilling at Chungar

METERS DRILLED 2018

POTENTIAL RESOURCES INFILL
MINE (M) (M) DRILLING (M)
TOTAL (M)

Animón 7,202 21,757 26,282 55,241

Islay 10,027 9,357 8,201 27,585
Total 17,229 31,114 34,483 82,826

These results have provided the necessary confirmation of continuity in the

mineralized zones, both at depth and laterally. Furthermore, new mineralized
bodies were defined and new structures and strata with economic potential were
discovered.
106/107 2 0 1 8 A N N U A L R E P O R T

09.
BUSINESS MANAGEMENT

In business terms, the behaviors of zinc concentrates and lead concentrates have
moved in opposite directions throughout the year, despite the fact that both began
under similar scenarios, i.e., markets considered to be in deficit with commercial
tolling in favor of mining producers.

Regarding zinc, over the last five months of the year, the market reacted quickly
to the reactivation of suspended operations, in addition to new productions
motivated by a sustained price increase, after the price of zinc hit 1,500 USD/MT
in late 2015. As reference, the average spot tolling in China from January to July,
2018 as published by Wood Mackenzie, was 26 USD/MT on a CIF basis, however,
it closed out the year at 187 USD/MT. Both the kickoff of new mining operations
and the opening of possible new zinc mining units in the next few months made
it possible to sustain such a drastic change in the market. Furthermore, on the
demand side new environmental restrictions forced refineries in China to reduce
their production capacity, diminishing the appetite for concentrates. All of this led
to a negative impact on the trade terms of zinc.
108/109 2 0 1 8 A N N U A L R E P O R T

Regarding lead concentrates, considering the decrease in the deficit of lead units, Fines Sales Volume By Business
the market is still in a favorable situation for mine producers, which is reflected in
commercial tolling. The large number of different lead qualities and the particular FINE SALES 2017 2018 VAR %
recovery of each refinery generate different tolling costs for each specific ore
quality. Zinc (thousands FMT) 255.0 238.7 -6.4
Lead (thousands FMT) 51.0 47.8 -6.3
Volcan maintained its market diversification policy and the search to optimize Mining business Copper (thousands FMT) 3.6 4.2 16.2
the ore value to improve trade conditions. Parallel to this, the Company sought
Silver (million Oz) 17.4 17.0 -2.2
to maximize the value per ton, which was based on finding the optimum degree
of concentrates, focusing on a higher recovery of payable elements and reducing Gold (thousands Oz) 9.9 15.0 51.9
impurities in concentrates as much as possible. Finally, the Company continued Zinc (thousands FMT) 2.6 - -100
with its efforts to reduce sales expenses through new, more efficient logistical Lead (thousands FMT) 0.6 - -100
strategies. Commercialization
Copper (thousands FMT) 1.5 - -100
business
The total fines sales volume decreased mainly due to lower production during the Silver (million Oz) 0.7 - -100
year. Gold (thousands Oz) 0.2 - -100
Zinc (thousands FMT) 257.5 238.7 -7.3
Lead (thousands FMT) 51.6 47.8 -7.3
Sales percentage by destination 2018
Total Copper (thousands FMT) 5.1 4.2 -17
Silver (million Oz) 18.1 17.0 -5.9
Gold (thousands Oz) 10.0 15.0 49.5

The average sales price of zinc increased from 2,836 USD/MT in 2017 to 2,917
USD/MT in 2018 (+2.9%), lead decreased from 2,311 USD/MT to 2,245 USD/MT
(-2.8%) and silver decreased from 17.1 USD/oz to 15.7 USD/oz (-7.9%).

Sales Prices By Metal

2017 2018 VAR %

Zinc (USD/MT) 2,836 2,917 2.9 Zinc

Lead (USD/MT) 2,311 2,245 -2.8 2,917 USD/MT
Cooper (USD/MT) 6,148 6,464 5.1 Lead
2,245 USD/MT
Silver (USD/oz) 17.1 15.7 -7.9
Cooper
Peru Korea China Italy 6,464 USD/FMT
69.2% 15.0% 7.1% 2.3% Silver
USA Suiza Belgium Others 15.7 USD/oz
2.2% 1.6% 1.4% 1.2%
110/111 2 0 1 8 A N N U A L R E P O R T

10.
ANALYSIS OF RESULTS AND INVESTMENTS

qSALES

Total sales in 2018, before adjustments, decreased 3.3% from USD 860.2 million
in 2017 to USD 831.5 million. This decrease is primarily due to the finalization of
third-party concentrate sales, which during 2017 was USD 22.8 million, and lower
sales from Volcan production due to stoppages in the Chungar and Yauli mines.

Sales adjustments totaled USD -56.4 million, with negative final settlements of
USD -34.5 million, adjustments due to provisions on open commercial positions,
USD -8.0 million, and adjustments for hedging results were USD -13.9 million.
As a consequence, in 2018 sales after adjustments totaled USD 775.1 million, a
decrease of 9.5% compared to USD 856.7 million in 2017.
112/113 2 0 1 8 A N N U A L R E P O R T

qCOSTS
Net Sales Breakdown (millions of USD)

2017 2018 VAR % In absolute terms, the cost of production fell 5.8%, from USD 399.5 million in
2017 to USD 376.3 million in 2018. Meanwhile, unit cost fell 2.6%, from 47.9
Zinc 478.9 488.6 2 USD/MT in 2017 to 46.6 USD/MT in 2018, due to processing of a greater volume
Lead 95.2 92.5 -2.8 of stockpiled, low-grade polymetallic mineral at Cerro de Pasco.
Cooper 13.1 16.3 24.7
Volcan continues to focus on cost control and reduction in all operating units.
Silver 243.3 220.7 -9.3 The Company continues with its policy of identifying specific opportunities for
Mining busines
Gold 6.8 13.4 96.2 improvement related to mining, supports, maintenance, transportation, and
Total 837.4 831.5 -0.7 administrative units.
Ajustes* -7.2 -56.3 681.2
Ventas Netas 830.1 775.2 -6.6 Absolute Costs (millions of USD)
Zinc 5.6 - -99.6
UNIT 2017 2018 VAR %
Lead 1.4 - -100
Yauli 232.9 208.6 -10.4
Cooper 6.4 - -100
Chungar 102.2 97.4 -4.6
Commercialization Silver 9.4 - -100
Cerro 14.3 18.8 32.0
business Gold 0.1 - -100
Óxidos 33.3 35.2 5.6
Total 22.8 - -99.9
Alpamarca 16.9 16.2 -4.0
Adjustments* 3.8 -0.1 -
Consolidated 399.5 376.3 -5.8
Net sales 26.6 -0.1 -
Zinc 484.5 488.6 0.8
Lead 96.5 92.5 -4.2 Unit Cost (USD/TMT)
Cooper 19.5 16.3 -16.4
UNIT 2017 2018 VAR %
Silver 252.7 220.7 -12.7
Total Yauli 65.2 65.1 -0.2
Gold 6.9 13.4 94.1
Total 860.2 831.5 -3.3 Chungar 55 58.2 5.7
Adjustments* -3.4 -56.4 - Cerro 13.5 14.3 6.4
Net sales 856.7 775.1 -9.5 Óxidos 28.7 30 4.5
Alpamarca 17.3 17 -1.9
* Adjustments: i) final shippment liquidations of previous terms, ii) adjustment for open positions (embedded
derivative and sales adjustment), iii) hedging results Consolidated* 47.9 46.6 -2.6
* The reported cost of production is the cost of production itself, which does not includes the cost of buying ore
and concentrates to third parties, nor those extra costs from the liquidation of staff.
114/115 2 0 1 8 A N N U A L R E P O R T

In 2018, the cost of sales was USD 534.1 million, 5.7% lower than the 2017 cost qINVESTMENTS
of USD 566.1 million. This reduction is primarily explained by the finalization
of third-party concentrate purchases, which during 2017 was USD 18.5 million, Total mining investment fell 4.6%, from USD 189.8 million in 2017 to USD 181.1
and the lower absolute production cost that decreased by 23.3 million due to million in 2017. Operating investments grew 2.0% from USD 171.5 million in
stoppages in the Chungar and Yauli mines. These were partially offset by the 2017 to USD 174.9 million in 2018, mainly through increases in local exploration
increased depreciation and amortization of USD 17.5 million. and development. Investment in the energy business increased 18.3% over the
previous year, from USD 3.2 million in 2017 to USD 3.7 million in 2018. Finally, Mining investment (USD)
overall investment was down 4.2%, from USD 193 million in 2017 to USD 184.9
Sales Cost Breakdown By Business (millions of USD) 189.8 181.1
million in 2018.
2017 2018 VAR %
MM MM
2017 2018
Cost of Own Sales 539.8 527.2 -2.3 Investment Breakdown (MM USD)
Energy investments (USD)
Cost of Own Production 399.5 376.3 -5.8 2017 2018 VAR %
D&A on Cost of Production 130.5 148 13.4 3.2 3.7
Ore Purchase 3.1 1.7 -43.9
Mining Business 189.8 181.1 -4.6 MM MM
Operating Units 171.5 174.9 2.0 2017 2018
Extraordinary Costs 2.7 1.4 -48.4
Local Exploration 13.2 22.4 69.4 Total investments (USD)
Variance in Own Inventory 4 -0.1 -
Development 69.6 76.9 10.6
Cost of Third-Party Sales 18.5 0 -100
Plants and Tailings Dams 52.8 35.3 -33.2
193 184.9
Concentrate Purchase 16.9 - -100 MM MM
Mine and Infrastructure 26.6 24.2 -9.0 2017 2018
Variance in Third-Party Inventory 1.6 - -
Energy in Units 3.5 8.2 133.5
Worker Shares 7.8 6.8 -12.5
Administration and Others 5.8 7.9 35.3
Total 566.1 534.1 -5.7
Regional Explorations 14.8 3.5 -76.6
Growth and Others 3.5 2.8 -20.2
Energy Business 3.2 3.7 18.4
Total 193 184.9 -4.2

qPROFITABILITY

The Company’s gross margin in 2018 was 31%, lower than the 34% recorded in
2017. This decrease in the gross margin responded to the negative trend in the
zinc, lead and silver prices, which give rise to negative sales adjustments. As a
result, gross profits decreased 17.1%, from USD 290.6 million in 2017 to USD
241.0 million in 2018.

Administrative expenses increased from USD 43.5 million in 2017 to USD 48.1
million in 2018. Meanwhile, regional exploration expenses increased from USD
2.2 million in 2017 to USD 13.7 million in 2018, due to a change in reporting in
2018, wherein all regional exploration is reported as expenses for the period and
are no longer capitalized.
116/117 2 0 1 8 A N N U A L R E P O R T

To adjust Company Meanwhile, sales expenses were down from USD 30.6 million in 2017 to USD 27.2 Income Statement (MM USD)
million in 2018. This drop mainly reflects lower sales volumes and lower freight
financial statements and shipping costs resulting from logistical and commercial improvements. Income Statement
2017 2018 VAR %
to Glencore’s (Millions of USD)
As for other net revenue and expenditures, this line item fell from USD -10.5
corporate accounting million in 2017 to USD -19.1 million in 2018. This is primarily because in 2018,
Sales before Adjustments 860.2 831.5 -3.3
expenses were recorded as a result of stoppages related to safety issues in the Final Settlements 9.4 -34.5 -
policies and
Yauli and Chungar mines, as well as administrative sanctions. Provisions for Open Positions -7.2 -8 10.6
standards, at the
Hedging -5.6 -13.9 149.7
close of 2017, Also, losses due to exchange rate fluctuations totaled USD -4.1 million in 2018,
Sales after Adjustments 856.7 775.1 -9.5
compared to gains of USD 1.2 million 2017.
Volcan recorded Cost of Sales -566.1 -534.1 -5.7
an exceptional net All of this resulted in EBITDA decreasing from USD 343.0 million in 2017 to USD Gross Profits 290.6 241 -17.1
288.6 million in 2018. Net profits rose from USD 92.7 million in 2017 to USD
charge of USD 0.9 30.3 million in 2018.
Gross Margin 34% 31% -3 pp
million Administrative Expenses -43.5 -48.1 10.6
To adjust Company financial statements to Glencore’s corporate accounting Exploration Expenses -2.2 -13.7 524.3
policies and standards, at the close of 2017, Volcan recorded an exceptional net Sales Expenses -30.6 -27.2 -11.1
charge of USD 0.9 million. The adjustments were mainly focused on i) evaluation Other Income (Expenses) 1
-10.5 -19.1 82.7
of devaluation of fixed and intangible assets (impairment); ii) deferred taxes; iii)
accounting provisions; and iv) cost of sales. Operating Profits 203.9 132.9 -34.8
Operating Margin 24% 17% -7 pp
These exceptional charges did not have any effect on the Company's cash flow. Financial Expenses (net) -40.3 -40.7 1.1
Also, in the case of the devaluation of fixed assets and intangibles, in the future
Exchange Difference (net) 1.2 -4.1 -
the adjustment may be reversed in the event of a scenario other than the one
considered in the evaluation as of Monday, December 31, 2018. Royalties -17.5 -13.3 -23.9
Income Tax -54.6 -44.4 -18.6
Net Profit before Exceptional 92.7 30.3 -67.3
qLIQUIDITY AND SOLVENCY Charges
Net Margin 11% 4% -7 pp
In 2018 Volcan generated USD 83 million in cash flow from mine and energy
operations, following operational investments. Disbursements for regional Adjustments for Exceptional Charges2 -570.2 -0.9 -
explorations and investment in mining and energy growth totaled USD 19 Net Profit after Exceptional -477.5 29.4 -
million, and USD 22 million were disbursed in other investments. The financing Charges
flow was negative by USD 81 million and includes USD 35 million in interest. EBITDA3 343 288.6 -15.9
As a consequence, total cash flow for the year was USD -39 million and the cash
EBITDA Margin 40% 37% -3 pp
balance as of December 31, 2018 was USD 63 million.
1
Includes sales and cost of sales for the energy division.
Considering EBITDA, cash balance, and debt, the leverage ratio (net financial debt/ 2
Exceptional charges in 2018 are USD -12.3 million in cost of sales, USD 38.7 million in other net income
(expenses) and USD -27.4 million in income tax, totaling USD 0.9 million.
EBITDA*) at year end was 2.5 to 1, compared to 2.0 to 1 in 2017. 3
This does not consider exceptional adjustments.
Source: Volcan Cía. Minera

_
* This corresponds to cumulative EBITDA for the last 12 months.
118/119 2 0 1 8 A N N U A L R E P O R T

11.
ENERGY

Volcan has hydroelectric generation plants and electrical transmission systems, The consolidated
which contribute to the generation of renewable energy by supplying energy not
only for its own operations but also for third-party operations. This strategy enables demand from Volcan
Volcan to improve its operating costs, guarantee an energy supply to mining and subsidiaries is
operations and contribute to the reduction of greenhouse gas emissions.
94 MW
The total installed capacity of hydroelectric plants is 63 MW based on the following
structure:

10 central 1 Central 1 Central 1 Central

hydroelectric hydroelectric hydroelectric hydroelectric
Baños - Chungar Tingo from Huanchor from Rucuy
(22 MW) (1 MW) (20 MW) (20 MW)
120/121 2 0 1 8 A N N U A L R E P O R T

Energy generation in qENERGY GENERATION Finally, in 2018, 99.49% availability was recorded for the high tension electricity
system in Yauli and 99.96% in Chungar–Alpamarca, excluding preventive
2018 was 308 GWh, Energy generation in 2018 was 308 GWh, a reduction of 13% over the 353 GWh maintenance work. This indicator reflects the degree of continuity and availability
of the previous year. This reduction was primarily: (i) due to a lower production in of electricity supply to mining operations.
a reduction of 13% the Chungar hydroelectric plants which together produced 153 GWh, reflecting a
over the 353 GWh of 6% reduction over the prior year, explained by the lower availability of resources in
Electricity Balance (GWh)
the previous year water basins; and (ii) because the Rucuy hydroelectric plant was not in operation
in 2018. 2017 2018 VAR %

Companía Hidroelectrica Tingo S.A.C., owner of the Tingo hydroelectric power Energy Production 352 308 -13%
plant, with 1.25 MW and 82 km of transmission lines in 50 and 22.9 kV, generated CH's Chungar 162 153 -6% Energy Production:
9 GWh, which were all used for Chungar operations. This power plant is currently CH Tingo 9 9 1%
seeking production and environmental permits to expand the Tingo plant from 352 308
1.25 to 15 MW. CH Huanchor 147 146 -1% 2017 2018
CH Rucuy 35 - -100%
Hidroeléctrica Huanchor S.A.C. produced 146 GWh in 2018, representing Energy Consumption 707 712 1%
a reduction of 1% over 2017. Huanchor is part of the Economic Operation Energy Consumption:
Energy Purchased 541 550 2%
Committee of the National Interconnected System (COES) and supplied electricity
to ten clients through contracts in 2018. 707 712
2017 2018
Finally, Empresa de Generación Eléctrica Río Baños S.A.C., owner of the Rucuy
hydroelectric power plant has been halted since March 2017 due to problems
arising in the penstock and transmission line as a result of the Niño Costero
phenomenon. Repairs to the power plant include the construction of a 430-m
vertical shaft and a 620-m tunnel that will replace the penstock. Construction
of these is underway and adheres to the Company’s high safety standards. It
estimates that operations will resume in the first half of 2019. The insurance
adjuster has already issued a favorable final report on material damages and lost
profits.

qENERGY CONSUMPTION

In 2018, the Company's total energy consumption rose to 712 GWh, with a
maximum demand of 94 MW, up 1% compared to 2017. This increase was
primarily caused by greater vegetative demand from mining operations.

Energy generation represented 43% of total energy consumption. Additional

energy required was purchased from Engie Perú S.A. and supplied via the National
Interconnected System (SEIN), through a supply contract signed on January 1,
2018.
122/123 2 0 1 8 A N N U A L R E P O R T

12.
SAFETY, HR, CORPORATE SOCIAL
RESPONSIBILITY AND ENVIRONMENT
qSAFETY

IMPLEMENTATION OF THE SAFEWORK PROGRAM

For Volcan, 2018 was a year of improvements to the SSOMAC Management System
through the implementation of new safety tools such as the implementation
of the SafeWork Program, proposed by Glencore. When Glencore merged with
Volcan’s SSOMAC system, it renewed and strengthened its thematic tools.

The evolution of the Volcan security system is displayed in the following page.
124/125 2 0 1 8 A N N U A L R E P O R T

The most important changes and improvements made to the SSOMAC System
through implementation of the SafeWork Program were the following:
1. Implementation of Thematic Tool N° 6: SafeWork
The main changes and improvements to the SSOMAC System 2018 2. Update of Thematic Tool N° 5: Substandard Conditions and Critical Risks
Previously 3. Update of Thematic Tool N° 3: Incident and Accident Investigation
(2012-2017):
Management The SafeWork Program involves the implementation of the following tools:
Environmental 1. 12 Fatal Hazard Protocols (FHP), which replace the “8 Critical Safety Risks”
a. The four remaining Critical Risks will be considered in Thematic Tool N°6
09. b. Each FHP involves three roll-out stages:
Training / Communication / Motivation • Stage 1: Compliance - target 2018
• Stage 2: Mature Application - target 2019 and 2020
08. 01. • Stage 3: Advanced Application - target 2020 and 2021
Environmental Management Risk Management / c. 10 Life-saving Behaviors
Enabling
Operations Discipline • In replacement of the 7 Golden Rules
onditions
07. 2. C
Occupational Health New management methodologies were included within the Thematic Tools:
1. 02. • Tool N°1: Risk Management / Operations Discipline
BASELINE Safe Behavior Audit • Tool N°3: Incident and Accident Investigation
3. Know ing

HIRAC
• Tool N°4: Contractor Management
Wi avior

06. Risk Assessment

Know

Critical Safety Risks

lling
h
Be

le

The SafeWork Program was launched in April 2018, with the participation of all
dg
4. e 03.
Incident Investigation managers and employees from the Lima office and mine units.

The program was launched in May with managers of contractor companies and
04. included the participation of Volcan management.
05. Contractor Management
Substandard SafeWork Program Books were handed out at each launch and in each related
Conditions activity. The SafeWork
• Fatal Hazard Protocols Book - for supervisors Program was
• Commitment Book - for all employees launched in April
Previously Previously (2012- Previously 2018, with the
(2012-2017): Risks 2017): Conditions (2012-2017): participation of all
Security Critics Standard Sub Investigation managers and
of incidents employees
126/127 2 0 1 8 A N N U A L R E P O R T

Safety indicators for 2018 were: Safety Indicators: The primary

• Frequency Rate: 1.04 - 12% less than in 2017
Frequency indicator • Severity Rate: 497 - 49% less than in 2017 objective in 2019 is
• Accident Rate: 0.51 - 55% less than in 2017 to ensure zero fatal
2015 The primary objective in 2019 is to ensure zero fatal accidents. This goes hand accidents
2.35 in hand with the search for an evolution in safety culture, which aims to begin a
2016 phase of independence regarding safety culture, where the leaders of each area
1.54 assume an active and more important role in safety management, responsible
2017 for overall control management, continuing with the implementation of the
1.18 SafeWork Program and being rigorous in compliance with fatal hazard protocols
2018 and the operative discipline.
1.04

Severity indicator

2015
384
2016
893
2017
974
2018
497

Incidence indicator

2015
0.90
2016
1.37
2017
1.15
2018
0.51

Results of safety management in 2018 at Volcan and subsidiaries:

• 1 fatal accident in Carahuacra Mine
• 26 incapacitating accidents - 10% less than in 2017
• 69 minor accidents - 22% less than in 2017
• 34 accidents with damages to property - 42% less than in 2017
• 27 HPRIs*, 16 of which were associated with failures in the rock massif

_
* HPRI (High Potential Risk Incident): Incidentes con alto potencial de riesgo
128/129
Volcan links together qHUMAN RESOURCES MANAGEMENT
(HR MANAGEMENT)
safety and human
In 2018, as with previous years, work plans and improvement projects were
development developed for the different human-resource management processes. Volcan
processes, involving links together safety and human development processes, involving not only
not only direct direct personnel but also suppliers and contractors. The Company is committed to
consolidating a well-prepared and committed human group, with solid personal
personnel but and corporate values and a focus on excellent results in all areas, with a primary
also suppliers and focus on safety and production.
contractors In 2018, efforts continued to optimize structures and standardize positions at all
levels of the organization.
TRAINING
As every year, in early 2018 annual training plans were developed for all mine
units. These plans are designed to meet development needs in alignment with
the Company's strategic business objectives.
Programs such as operator training, supervisor development, fatal hazard
protocols, critical risks and new methodologies and tools for analysis of incidents
and accidents have contributed to closing the gaps in appropriate behavior and
improving staff skills. These programs had a notable impact on SafeWork in
operations and projects, and optimizations in the technical areas of all mine units.
PERFORMANCE AND TALENT MANAGEMENT
As in previous years, the performance management process is part of the
employee management cycle and is manifested through recognition of individual
contributions in the period evaluated.
The Company has its own tool for managing individual goals and assessing
performance for recognition through Compensation Plans or in the Recognition
Program.
In 2018, Volcan continued its talent retention plan, personal development plan,
salary planning and prioritizing training activities for outstanding personnel.
2 0 1 8 A N N U A L R E P O R T
In late 2018, Volcan designed the 2nd version of its Trainee Program, open to high-
potential young professionals on a national level. Over 5,000 candidates from a
wide range of universities were assessed, and 20 professionals were selected for
the program. This program kicks off 2019 with a holistic training program in the
classroom and in the field.
COMPENSATION AND BENEFITS
In 2018, roles and responsibilities were defined for operating and corporate areas,
achieving efficiency in decision-making and promoting coordination between
these areas.
As in previous years, the salary analysis was compared to the mining market to
ensure external competitiveness and internal equity, followed by implementation
of the necessary adjustments through salary planning.
The contractor personnel management team was created mid-year to ensure that
specialized companies comply with labor obligations, accommodations, food and
transportation standards.
PERSONNEL MANAGEMENT
2018 has been a year of increased control and monitoring of management
indicators,with improvements in vacation management,reduction in absenteeism,
improvements in overtime management and authorization, payroll and benefits
payment, improvement in work schedule control. There was an adaptation of the
company’s internal policies and procedures to new legal standards, in an effort to
eliminate work incidents, generating discipline and positive effects on the service
provided to employees.
INTERNAL COMMUNICATIONS
In 2018, the Internal Communications Plan was reinforced in accordance with the
established strategy. Closer ties were built between employees through internal
programs and events, enabling an efficient work environment and promoting a
better internal climate.
The SafeWork program was launched in 2018. Through a solid communication
and outreach strategy, this program marks an important commitment between
130/131 2 0 1 8 A N N U A L R E P O R T

the company and employees to ensure fulfillment of the goal of zero accidents the Company offers health plans through EPS for employees, their dependents,
through safe behavior. parents, and children over the age of 18, as well as ESSALUD and Complementary
Workplace Risk Insurance coverage.

Volcan is concerned PERSONNEL WELLBEING AND WORKPLACE CLIMATE

about the wellbeing
Volcan is concerned about the wellbeing and personal balance of all of its
and personal employees. It measures workplace climate every year by looking at personnel
balance of all of its satisfaction levels through the Organizational Climate Survey, which is based
on a series of aspects that significantly influence employee satisfaction and
employees commitment levels. It is divided into: Identification and Commitment, Leadership
and Human Resources Management.
VOLCAN WORKFORCE
As of December 31, 2018, the Company had a total of 3,011 direct employees.
Of those, 2,186 are permanent employees (with contracts for an indefinite term)
and 825 are temporary workers with fixed-term contracts. In addition, 7,784
employees are from companies that provide specialized services to Volcan, for a
total workforce of 10,795 employees.

Its outcome was the development of plans such as: 2018 Volcan Olympics,
Globalist Lottery, Volcan Marathon, Recognition of Safe Collaborators, leadership Direct employees
workshops, improvement of dining room service, improvement of employee 3,011
transportation, monthly birthday celebrations, holiday celebrations, competitions,
fairs, nutritional consultations, and others.
10,795
workforce
OCCUPATIONAL HEALTH AND SAFETY Employees from
companies that provide
Volcan developed actions to identify, assess and control the risk of occupational specialized services
illness among employees, mainly:
• Identification of groups who face similar types of exposure in all mine units to
7,784
determine which agents may be causing occupational illnesses.
• Monitoring of physical, chemical, biological, ergonomic, and psychosocial Volcan’s own personnel
agents.
WORKERS EMPLOYEES OFFICIALS TOTAL
• Design of control measures to minimize exposure to agents that may cause
harm to people. 2016 2017 2018 2016 2017 2018 2016 2017 2018 2016 2017 2018

• Medical supervision based on GES information, monitoring agents and

Volcan Cía 492 433 442 990 1,222 1,228 33 31 32 1,515 1,686 1,702
risk factors, reporting accidents and cases of chronic illness, as well as
Minera S.A.A.
epidemiological reporting from medical centers.
Cía. Minera 386 368 366 511 534 558 2 2 3 899 904 927
Occupational medical exams were given, with 100% participation of employees Chungar S.A.C.
throughout the entire organization. Health campaigns were also implemented Emp. Admin. 156 167 171 52 62 69 - - 0 208 229 240
to rule out and prevent chronic or pathological illnesses, as well as biological Cerro S.A.C.
monitoring due to heavy metal exposure. Óxidos de Pasco 37 39 39 75 78 80 1 1 1 113 118 120
S.A.C.
The mine units are all staffed with doctors, nurses, psychologists, paramedics and Hidroeléctrica - - - 22 22 22 - - - 22 22 22
dentists, who treat staff both on a walk-in basis and in emergencies. In addition, Huanchor S.A.C.
Total 1,071 1,007 1,018 1,650 1,918 1,957 36 34 36 2,757 2,959 3,011
132/133 2 0 1 8 A N N U A L R E P O R T

qSOCIAL RESPONSIBILITY
In 2018, Volcan invested USD 4.85 million in development of 38 communities
in our area of direct influence, mainly as a consequence of agreements and
commitments to rural communities, sustainable development plans, and
community relations plans contained in environmental impact studies. The
Volcan invested investment is concentrated around five pillars: education, health, economic
USD 4.85 million development, local employment development, and infrastructure. Also, to
in development of strengthen local economies Volcan does business with community enterprises.
38 communities These enterprises are contracted to provide services such as civil works construction,
in our area of mining operations, and load hauling, among others.
direct influence
In 2018, there were three volunteer groups in Lima and four from units, supporting
1,196 people.
Number of Editions
NEWSLETTER
The Company created an information channel for the communities, with a goal to
reinforce basic values, providing safety and health advice, articles on educational
topics, emphasizing the importance of caring for the environment, and informing
the community about how the Company is complying with its commitments,
among other information.

01. CORPORATE RECYCLING PROGRAM

CORPORATE
CORPORATE VOLUNTEER PROGRAM
In 2018, Volcan continued its Corporate Volunteer Program. Employees from
different areas of the Yauli and Chungar units, as well as from Lima, volunteer
their time, becoming new change agents who, based on their professional
experience, share their knowledge with children and youth in the communities
near operations. This has helped generate spaces for improvements in education,
development of green spaces, and school infrastructure.
6 6 2 2
Yauli Chungar Baños Cerro
The "Recycle Me" recycling program was implemented through a partnership with
Aldeas Infantiles SOS. The purpose of the program is to promote awareness about
the need to recycle paper and preserve the environment, as well as to generate
funds that will provide meals for children served by Aldeas Infantiles SOS.
In 2018, the “Tapatón” campaign was implemented in conjunction with the NGO
“Tierra y Ser” and the Lima and Unit offices. This program aims to create awareness
about recycling and reuse, while supporting people with disabilities.

Activities held
UNIT VOLUNTEER PROJECT
“Building a Sandbox”
“Recycling with Perú
Lima
Champs”
“Painting a Future”
“Children’s Day”
Andaychagua “Andaychagua teaches you”
IMPACT
A safe play area was built for children in the Belaunde Terry school -
Callao
Children from Perú Champs co-created alternative solutions to
climate control with volunteers.
The children’s vegetable patch in the San Juan Macías - Rimac school
was repaired
Children from the Ramiro Prialé School in Suitucancha school
celebrated Children’s Day
This project generated sustainable development through education.
CERRO UEA
The unit formed a strategic partnership with the Peruvian Superintendent of
Banks (SBS) to implement the "Finances at School" program. The program is
designed to improve the financial knowledge of teachers so that they can pass on
that knowledge to their students. The ultimate objective is to enable students to
properly manage their finances and participate in the financial market, complying
with the obligations they take on and ensuring that their consumer rights are
respected. The first of these programs was carried out on May 19 and 20, 2017.
In May 2018, the “Finances for you” workshop was implemented with more than
50 participants.
CHUNGAR UEA

“Improving Lives” This project improved quality of life for people in vulnerable In November the Company implemented an anemia intervention in the
situations in Huayhuay and Suitucancha. communities of Huaychao (Chungar), and Quiulacocha and Paragsha (Cerro de
“Make your mark - plant a Trees were planted with elementary and high school students at Pasco). This intervention has a one-year horizon and will be implemented by NGO
Baños tree” I.E. 20422 Nuestro Señor de Exaltación – C.C. Viscas and in the Prisma. Its objectives include working with families to increase the consumption
community of San José de Baños. of nutritious products and promote self-care and hygiene practices.
134/135 2 0 1 8 A N N U A L R E P O R T

In partnership with 02.

EDUCATION
the "Teach Peru" IN 2018, SEVEN SCHOLARSHIPS
(Enseña Perú) ELEMENTARY AND HIGH SCHOOL EDUCATION WERE GIVEN TO YOUNG PEOPLE
program, we have The company has strengthened its partnership with the “Enseña Perú” (Teach
FROM THE RURAL FARMING
directly benefited Peru) program, an association that helps professionals work together to transform COMMUNITY OF YAULI TO
education. In 2018, this partnership was present at the Yauli, Chungar, and Cerro de SUPPORT THEIR TECHNICAL
more than 600 Pasco units, directly benefiting more than 600 students in primary and secondary
students in primary schools, and indirectly benefiting more than 1,500 students. This helped improve STUDIES (SENATI)
and secondary their performance in math, language comprehension, physics, English, science,
and technology and the environment. This program has also been a key strategic
schools, and partner in implementing the Volcan Corporate Volunteer program.
indirectly more than
Associated communities included in the program
1,500 students
DEPT. UNIT COMMUNITY NO. OF PROGRAMS

Cerro Rancas 1
Pasco Huayllay 5
Chungar
Huaychao 2
Huayhuay 2
Junín Yauli Suitucancha 2
Yauli 3
Total 15

HIGHER EDUCATION

Yauli UEA
The National Service for Industrial-Technical Training (SENATI) full scholarship
program was continued, with scholarships awarded to two young people from
the rural community of Yauli to study heavy machinery mechanics and industrial
electronics.

In 2018, seven scholarships were given to young people from the rural farming
community of Yauli to support their technical studies. Of these students, one
dropped out during the first semester of the year and another graduated in heavy
machinery mechanics in the second semester of 2018.

In the community of Suitucancha, in the second semester of 2018, the only

two scholarship recipients completed their technical degree in maintenance
mechanics.
136/137
Cerro UEA
In the San Antonio de Rancas Community, 22 students were awarded scholarships
to Universidad Nacional Daniel Alcides Carrión (UNDAC) and 15 students were
awarded full scholarships to SENATI.
In the Quiulacocha Community, three students were awarded scholarships to
Universidad Nacional Daniel Alcides Carrión (UNDAC) and one student was
awarded a full scholarship to SENATI.
Chungar UEA
At the end of the second semester 2018, there were two scholarship
recipients in the community of Huaychao and 12 scholarship
recipients in the community of Huayllay.
Computer and English classes were also offered, benefiting more
than 58 students in the community of Huayllay.
Baños Hydroelectric Plants
In the community of San José de Baños, seven students received
full scholarships to SENATI.
In the community of San José de Baños, one student received a
full scholarship to SENATI.
2 0 1 8 A N N U A L R E P O R T
TRAINING
Yauli UEA
• In 2018, nine women in the Yauli rural farming community were trained in a
fine baking and breadmaking workshop, necessary for implementation of the
community bakery.
Chungar UEA
• Annual heavy machinery operator training course for 20 community residents
and children of residents of Huayllay and Huaychao.
• Computer and English classes were offered, benefiting more than 58 students
in the community of Huayllay.
• The Continuing Education in Commercial Breadmaking and Baking program
began for members of the Huayllay rural farming community to strengthen
business skills in women. Thirteen female entrepreneurs participated in the
program.
• Training in textile artisanry and work tools was offered to 42 women registered
in the San Agustin de Huaychao rural farming community, district of Huayllay,
Pasco.
Cerro UEA
• Trainings were given to contractor employees and employees of other local
companies in the direct area of influence on the Code of Ethics and Conduct, Trainings were
in compliance with the Information and Communication Program of the given to contractor
Community Relations Plan. employees and
• In coordination with DIRESA in Pasco, educational sessions were held for employees of
members of communities in the area of influence on nutritional health, other local
adolescent health, healthy educational establishments, healthy homes. companies in
• Dental hygiene talks were given, as well as environmental awareness and the direct area of
conservation sessions, targeted at students from local schools. influence on the
• Training in participative socio-environmental monitoring, targeted at Code of Ethics and
communities and towns in the area of influence, followed by participative Conduct
environmental monitoring.
• With the services of a livestock manager from NGO Prisma, labor and technical
training modules were developed in the area of livestock, shearing, production
and sale techniques. The purpose of this activity was to increase labor skills
in the community to help integrate into the labor market in the region, while
promoting the development of productive and sales chains.
138/139 2 0 1 8 A N N U A L R E P O R T

Baños Hydroelectric Plants

• Training workshops held on livestock dosage in Chuquiquirpay and San José
de Baños. VOLCAN CONTINUED TO
• A workshop was given on livestock care (animal castration) in the community PARTNER WITH NGO PRISMA
of Santa Cruz.
• Women’s empowerment workshops were developed in the communities of TO HAVE A REAL IMPACT AND
Santa Cruz and San José de Baños in partnership with the Ministry of Women IMPROVE COMMUNITY HEALTH
and Vulnerable Populations.
STANDARDS

03.
HEALTH

HEALTH CAMPAIGNS

Volcan continued to partner with NGO Prisma to have a real impact and improve
community health standards.

The project uses indicators in more than 10 medical specializations to identify the
most prevalent diseases such as respiratory, musculoskeletal and gastrointestinal

Number of patients seen/visits per specialization

LOCATION (NO. OF SPECIALIZED
DEPARTMENT UNIT CAMPAIGN SERVICES
PEOPLE) SERVICES

Pachachaca 1° 214 721

Pomacocha 1° 94 430
Yauli Suitucancha 1° 203 727
1° 281 718
Yauli
2° 334 876
1° 197 623
Mining Quiulacocha
Cerro 2° 243 880
Yurajhuanca 1° 136 300
1° 241 834
Huaychao
Chungar 2° 203 888
Huayllay 1° 665 1,999
Total Mining 2,811 8,996
Ravira 1° 76 275
CH Baños
Energy Viscas 1° 101 377
Total Energy 177 652
Total 2,988 9,648
140/141 2 0 1 8 A N N U A L R E P O R T

diseases, and to monitor their evolution over time. In addition to development of Chungar UEA
health campaigns to treat these diseases, the Company implemented preventive
care through advocacy meetings, raising the awareness of authorities, and Health Campaigns
experiential educational sessions on topics that cater to local needs, such as
personal care and hygiene, healthy eating, and anemia prevention. LOCATION CAMPAIGN
NUMBER OF
SESSIONS
NAME OF THE SESSION
TOTAL NUMBER
OF PARTICIPANTS

Because the government plays a fundamental role in the sustainability of Demonstration session on proper hand washing
1 32
the project, Volcan seeks to involve authorities in its implementation and technique
1st
management. In that sense, during the various health campaigns patients have Demonstration session on dental health - proper
1 53
been identified who require immediate attention by public health services, and tooth brushing technique
the Company has helped facilitate their access to proper treatment. Educational session on prevention of lead
Huaychao 1 32
pollution
Yauli UEA Educational session - demonstration on proper
In 2018, five health campaigns were carried out in the communities of 2nd 1 26
hand washing technique
Suitucancha, Pomacocha, Yauli and Pachachaca. Health services were provided
1 Demonstration session on food and nutrition 19
in general medicine, pediatrics, gynecology, ultrasound, psychology, nutrition,
dentistry, physiotherapy, laboratory, pharmacy and triage. Educational session on proper dental health 34

Baños Hydroelectric Plants

Health Campaigns

LOCATION CAMPAIGN NUMBER OF SESSIONS NAME OF THE SESSION

TOTAL NUMBER Health Campaigns
OF PARTICIPANTS
NUMBER OF TOTAL NUMBER
Educational session and demonstration LOCATION CAMPAIGN NAME OF THE SESSION
1 22
SESSIONS OF PARTICIPANTS
on proper hand washing technique
Yauli 1st 1 Educational session on proper dental health 32
Educational session and demonstration Ravira 1st
1 19 1 Demonstration session on iron-rich foods 32
on proper dental health
Viscas 1st 1 Educational session on proper dental health 15
Cerro UEA

Health Campaigns
NUMBER OF TOTAL NUMBER
LOCATION CAMPAIGN NAME OF THE SESSION
SESSIONS OF PARTICIPANTS

1 Dental health (demonstration with puppets) 17

1° 1 Child nutrition and food from 6 months to 2 years 15
Quiulacocha
1 Dental health: proper tooth brushing technique 14
2° 1 Dental health: proper tooth brushing technique 20
Educational session - demonstration on proper
1 20
hand washing technique
Yurajhuanca 1° Educational session on dental health,
1 demonstration of proper tooth brushing 49
technique
142/143 2 0 1 8 A N N U A L R E P O R T

04.
ECONOMIC DEVELOPMENT
FARMING CAMPAIGNS HAVE
FARMING DEVELOPMENT BEEN HELD TO IMPROVE THE
Volcan has designed a strategy with NGO Prisma for the conservation and care
PRODUCTIVE CHAIN IN
Volcan has of traditional enterprises and the development of their industry and innovative COMMUNITIES THROUGH
designed a ideas. TECHNICAL ASSISTANCE AND
strategy with NGO
Prisma for the Farming campaigns have been held to improve the productive chain in MONITORING THE PROGRESS IN
conservation and communities through technical assistance and monitoring the progress in the THE AREAS OF INFLUENCE
care of trad areas of influence.

Livestock were washed and treated for parasites in the Chungar UEA for the
communities of influence. In the community of Huayllay, a total of 29,589
animals were treated for parasites and in the community of Huaychao, 64,018
animals were treated to prevent and control external parasites in sheep, camelids,
cattle and horses, benefiting the communities.

Visits per location

MANAGEMENT/ TOTAL HEADS
UNIT CAMPAIGN
COMMUNITY DOSED

1st Cooperativa Yanamate 11,929

1st Quiulacocha 13,613
Cerro
2nd Quiulacocha 13,613
1st Yurajhuanca 6,664
1st Huayllay 9,105
Chungar
1st Huaychao 30,503
1st San José de Baños 1,890
Santa Cruz de
1st 2,200
Andamarca
San Miguel de
1st 7,911
Vichaycocha
Baños 1st San Juan de Chauca 216
1st Santa Catalina 1,698
1st Viscas 758
Ravira (includes
1st 1,927
Pacaraos)
1st Chauca 216
1st Pomacocha 7,784
Yauli 1st Yauli 6,723
1st Suitucancha 25,926
Total 142,676
144/145 2 0 1 8 A N N U A L R E P O R T

The promotion of 05. -- 48 applicants from the community

LOCAL EMPLOYMENT DEVELOPMENT -- 26 profiles of people hired by specialized companies that met requirements
local employment
helped reduce The promotion of local employment helped reduce unemployment and increase
income in the communities of influence, promoting an improvement in skills and BAÑOS UEA
unemployment and contributing to human and professional development.
increase income in Based on commitments assumed, work opportunities were given to communities
in the area of influence, benefiting 22 members of the communities of Ravira and
the communities of CERRO UEA Viscas.
influence
In 2018, Volcan worked with the following local companies:
• Empresa Comunal ECOSERM-Rancas
• Empresa Comunal Tingo Palca
06.
INFRASTRUCTURE
• Empresa Comunidad Campesina Racracancha
• Empresa Comunal de Servicios Múltiples Quiulacocha - ECSERM QUIULACOCHA YAULI UEA
• Empresa Comunal de Servicios Múltiples Yurajhuanca - ECSERM YURAJHUANCA.
Yauli Community
It also worked with the following companies owned by locals: The first and second stage of the Technical Institution Center were completed, with
• Empresa San Antonio de Rancas S.R.L. – EMSAR a total of more than USD 239,000 invested in 2018 as part of the “24-hectare
• Francar S.A.C. Rumichaca Tailings Dam Expansion” agreement signed in 2012.
• ITRAN Cornelio & Muñoz S.R.L. Base average of the work: PEN 579,000 to support education.
• Flores S.C.R.L.
• Devall S.A.C. Pomacocha Community
Leveling works for the stadium began (20% complete) as part of the “10.9-hectare
As a result of this, Volcan was able to increase skills and training in residents of the Rumichaca Tailings Dam Expansion” agreement signed in 2014.
communities of influence.

CERRO UEA
CHUNGAR UEA
• The “Healthy Homes” Program was carried out to improve the quality of life
In 2018, Chungar continued its Local Employment Program thanks to the and provide a healthy environment to members of the San Antonio de Rancas
procedure established in May 2017. In 2018, the following results were obtained: community, located near the Ocroyoc tailings dam and other mining areas.
• Huayhuay Community Solar panels were given to the 13 families identified.
1,000 positions were offered to promote local employment in specialized • Canal access routes underwent annual maintenance, in compliance with the
companies (Chungar suppliers). agreement signed with the Racracancha rural farming community.
-- 250 applicants from the community
-- 142 profiles of people hired by specialized companies that met requirements
• Huaychao Community CHUNGAR UEA
134 positions were offered to promote local employment in specialized
companies (Chungar suppliers). • Works carried out in communities include the construction of a mini athletic
field for C.E. Ricardo Palma. Work is currently underway and will be completed
in 2019.
146/147 2 0 1 8 A N N U A L R E P O R T

• Construction of two livestock sheds Through the Public Works and Tax Credit Program, the Company, at 2018 year
• Opening of a carriageway in Huancohuaranga end, finalized the New Chancay Food Market Project, with more than 650 stands,
• Construction of a perimeter fence in Quimacocha with an investment of more than PEN 22 million. This is a very important project
for the city of Chancay and will benefit 85,000 people.

BAÑOS HYDROELECTRIC PLANTS
• Volcan has actively participated in watering the Tingo bridge highway segment
to the community of San Jose de Baños in May, June, July, August, September,
October and November as part of its commitment to the environment to reduce
pollution.
• 1,000 meters of fencing and 300 posts were given to the community of San
José de Baños, and 250 meters of fencing was given to the community of
Carhuacayán to improve livestock production.
• Riverbank protection was built in Baños Collpa in the community of Santa
Catalina, as part of the “use of 426.47 hectares for mining purposes” agreement
signed in 2017.
• The public safety office in the Ravira community was remodeled as part of
the agreement “to constitute surface rights and easement rights for the
development of hydroelectrical plants” signed in 2013.
In addition, 2018 marks the culmination of recovery of the investment in the
water and sanitation project for the village of San Agustín de Huaychao (Huayllay-
Pasco), totaling PEN 8.1 million and implemented in conjunction with Ferreyros
and Unimaq.
Volcan is ranked third among mining companies in terms of the number of
projects awarded and total investment amount committed in the Public Works and
Tax Credit Program. It has the highest recovery percentage (80%) in comparison
to the market. In addition, Volcan is a founding member of ALOXI, the Alliance for
Public Works and Tax Credit (Alianza para Obras por Impuestos), which represents
companies responsible for more than 80% of the projects executed as part of that
program.
Rankings of companies by investment amount and number of projects (Millions of PEN between 2009-2018)

N° COMPANY TOTAL
07. 1 Banco de Crédito del Perú-BCP 1,097.1
PUBLIC WORKS AND TAX CREDIT PROGRAM
2 Southern Peru Copper Corporation 595.2
Since 2010, Volcan has provided PEN 108.5 million to finance 14 infrastructure 3 Compañía Minera Antamina S.A. 574.8
and public utilities projects with major social impact, which have contributed to 4 Telefónica del Perú S.A.A. 214.1
reducing the infrastructure gap in the country in sectors related to education, 5 Banco Internacional del Perú S.A.A. - Interbank 179.1
water and sanitation, solid waste management, transport and others. These
6 Optical Technologies S.A.C. 160.9
projects have reached approximately 500,000 people with their benefits.
7 Volcan Compañía Minera S.A.A. 108.5
The reduction of PEN 17.5 million in relation to 2017 corresponds to the resolution 8 Unión de Cervecerías Peruanas Backus y Johnston S.A.A. - BACKUS 97.0
of the landfill agreement with the Pasco Provincial Municipality. This follows a 9 Cementos Pacasmayo S.A.A. 84.3
change in strategy in the organization; however it will work in conjunction with
the new authorities on its portfolio of 15 new projects. 10 Ferreyros S.A. 77.3
Source: Department of Decentralized Investments – ProInversión
Volcan continues to participate and actively promote the Public Works and Tax
Credit Program through new projects and by approaching new local, regional and
national authorities. Projects carried out by the Company primarily benefit nearby
communities and also align with an internal strategy to invest in important sectors
that generate greater social impact.
148/149 2 0 1 8 A N N U A L R E P O R T

qENVIRONMENT It also began implementation of the Environmental Performance Index (EPI).

The EPI is an index that measures environmental performance of the operation
Volcan develops mining activities committed to the protection and care of in the processes and activities developed, operating variables in relation to
the environment, ensuring that any environmental impact resulting from its environmental variables. This index primary draws its information from values
processes, activities and projects is prevented, reduced, controlled or mitigated. reported in the Glencore Corporate Practices (GCP) portal. Implementation of the
EPI enables management through reactive and proactive indicators that help set
Volcan develops In 2018, the Company outlined strategies and goals aligned with the corporate targets for 2019.
mining activities vision: implement world-class practices by 2021. The Company takes a preventive
committed to approach to environmental management.
the protection ENVIRONMENTAL CERTIFICATIONS AND PERMITS
and care of the
environment ENVIRONMENTAL MANAGEMENT SYSTEM Given the dynamic nature of operations, with new projects, expansions,
modifications, and technological improvements, modifications have been made
As part of Volcan’s environmental management strategy, in 2018 the Company as needed to comply with current laws.
continued to implement the Critical Environmental Risks program with a focus
on prevention and control efforts for main environmental risks, standardizing Since 2016 the Company has been conducting legal environmental audits to
operational criteria in each mine unit. measure the degree of compliance with environmental and legal obligations Since 2016
required by the Peruvian government. the Company
The critical risks developed are: has been
1. New projects The legal environmental audit for 2018 was conducted by an external consultant. conducting legal
2. Liquid effluent exceeding established limits The results exceeded projections for 2018 by 5% and control mechanisms showed environmental
3. Inadequate waste disposal an improvement in compliance with environmental obligations. audits to
4. Rupture of tailings dams measure the
5. Degradation of the area The Company complied with all requirements of the Ministry of Energy and Mines, degree of
6. Atmospheric emissions OEFA, and the National Water Authority, including the following: compliance with
7. Transport of hazardous loads 1. Annual Solid Waste Management Declaration environmental
8. Consumption of natural resources 2. Environmental Monitoring Reports and legal
3. Sustainability Report obligations
Key corporate standards developed to manage critical environmental risks are: 4. Environmental Strategy Compliance Report required by
1. Environmental management of new projects 5. Annual Report on Significant Decreases during the period the Peruvian
2. Water and liquid effluent management 6. Annual Report on Reagents and Operational Inputs government
3. Solid waste management
4. Waste disposal management (waste dumps and tailings dams) Environmental training was provided to personnel in all mining units in
5. Guidelines for mine closure compliance with Article 153 of Supreme Decree No. 040-2014-MEM.
6. Atmospheric emissions management
7. Emergency preparedness and response Environmental Obligations approved in the Environmental Management
8. Natural resources management Instruments was among the training topics.

This system is measured in annual external audits, through the assessment and As part of the Company’s growth, in 2018 it obtained the following environmental
qualification of the 8 standards through audit protocols. certifications and permits:

The last assessment made in December 2018 recorded a 66% completion of

implementation. For 2019, Volcan anticipates 71% completion.
150/151 2 0 1 8 A N N U A L R E P O R T

List of Certifications and Permits held by Volcan Compañía Minera Volcan and Subsidiaries - 2018 List of Certifications and Permits held by Volcan Compañía Minera Volcan and Subsidiaries - 2018
MINING MINING
TYPE OF APPROVAL TYPE OF APPROVAL
COMPANY UNIT/ DESCRIPTION COMPANY UNIT/ DESCRIPTION
PERMIT RESOLUTION PERMIT RESOLUTION
PROJECT PROJECT

R.D. N° 027-2018- Improvement of the environmental Empresa

ITS R.D N° 007-2018-
Empresa SENACE-JEF-DEAR management plan Explotadora de Vinchos MCP 2nd Modification of the MCP
MEM-DGAAM
Administradora Authorization to R.D N° 0701-2018- Ocroyoc Tailings Dam to elevation 4,270, Vinchos
Cerro S.A.C. Cerro Pasco Operate MEM-DGM-V corresponding to stage II phase 1 2 Supporting Technical Reports-Add a
chimney, eliminate pipeline that passes
Paragsha Ocroyoc Concession Modification R.D. N° 115-2018-
R.D N° 0227-2018- Volcan Andaychagua ITS through the main dam of the tailings
ITM Project to increase the installed capacity SENACE-JEF/DEAR
MEM-DGM-V Compañía dam, optimize environmental control and
from 12,500 MTD to 17,500 MTD (Sorting)
Minera S.A.A. surveillance
R.D N°094-2018- Optimization of wastewater system, Authorization to R.D N° 0913-2018- Rumichaca Tailings Dam at
Islay ITS Carahuacra
SENACE-JEF-DEAR expansion of camps, a chimney Operate MEM-DGM-V elevation 4,224
Implementation of chimney, expansion of
R.D N°087-2018- ITS (acronym in Spanish): Supporting Technical Report
Animón ITS landfill, relocation of piezometric network,
SENACE-JEF-DEAR MCP: Mine Closure Plan
expansion of camps EISsd: Semi-detailed Environmental Impact Study
ITM (acronym in Spanish): Mining Technical Report
R.D N° 096-2018- Identification of Contaminated Sites (IISC
Alpamarca EQS Soil
MEM-DGAAM in Spanish)
qCLOSURE PLANS
Animón-Islay ITS
R.D N° 016-2018-
First Supporting Technical Report
The revegetation
MEM-DGAAM
Compañía As part of the execution of government-approved mine closure plans, the re- and progressive
R.D N° 133-2018- Semi-detailed Environmental Impact vegetation and progressive restoration program has been implemented to
Minera Romina EISsd restoration
MEM/DGAAM Study - Exploration recover areas affected by mining activities, to benefit communities in the area
Chungar S.A.C
Palma ITS
R.D N° 116-2018- First Supporting Technical Report - of environmental influence. Progress in the activities executed and their results program has been
MEM-DGAAM Exploration were reported to the Ministry of Energy and Mines. These are then enforced by the implemented to
R.D N° 242-2018- Agency for Environmental Assessment and Enforcement.
Animón MCP
MEM/DGAAM
2nd Modification of the MCP recover areas affected
Mine closure plan commitments in 2018 were focused on implementation of by mining activities
Authorization to Operate for Alpamarca
Authorization to R.D N° 0426-2018- activities on inoperative mining components and environmental liabilities that
Animón tailings dam at elevation 4,676 masl -
Operate MEM/DGM-V were incorporated as part of mine closure plans. Closure plans were implemented
Stage II
as part of the Company’s progressive closure program.
R.D N° 133-2018-
Romina EISsd Romina 2 Exploration Project
MEM/DGAAM
Compañía
Minera R.D N° 042-2018-
Carhuacayán ITS First Supporting Technical Report
Vichaycocha MEM-DGAAM
S.A.C.
152/153 2 0 1 8 A N N U A L R E P O R T

Oxides Plant.
154/155 2 0 1 8 A N N U A L R E P O R T

13.
AUDITED FINANCIAL STATEMENTS

There has been no resignation or dismissal of the chief accountant or auditor in

the last two years.

VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL RESULTS AS OF DECEMBER 31, 2018 AND 2017

Contents
• Consolidated statement of financial position
• Consolidated statement of comprehensive income
• Statement of changes in consolidated net assets
• Consolidated cash flow statement
• Separate statement of financial position for Volcán Compañía Minera S.A.A.
• Separate statement of comprehensive income for Volcán Compañía Minera
S.A.A.
• Separate statement of changes in consolidated net assets for Volcán Compañía
Minera S.A.A.
• Separate cash flow statement for Volcán Compañía Minera S.A.A.
156/157 2 0 1 8 A N N U A L R E P O R T

VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES

LIABILITIES AND
2018 2017 01.01.2017
EQUITY
q VOLCAN COMPAÑÍA MINERA S.A.A. AND
SUBSIDIARIES CONSOLIDATED STATEMENT OF CURRENT LIABILITIES
FINANCIAL POSITION AS OF DECEMBER 31, 2018 Bank overdrafts 34 4,005 30,256
AND 2017 (RE-EXPRESSED) AND JANUARY 1,
Financial obligations 208,665 187,863 239,662
2017 (RE-EXPRESSED)
(Expressed in thousands of US dollars) Trade accounts payable 202,544 209,962 211,244
Other accounts payable 96,969 94,951 122,422
ASSETS 2018 2017 01.01.2017
Other financial liabilities 48,218 126,619 94,319
CURRENT ASSETS Total current liabilities 556,430 623,400 697,903
Cash and cash equivalent 62,950 101,829 140,945
Trade accounts receivable, 41,842 66,167 63,165 NON-CURRENT
net LIABILITIES
Other accounts receivable 168,597 160,929 350,479 Financial obligations 587,764 628,987 562,504
Other financial assets 640 42,454 38,295 Other financial liabilities - - 24,570
Inventories, net 64,640 63,920 82,801 Provisions 233,086 156,340 104,977
Total current assets 338,669 435,299 675,685 Deferred income tax 199,557 152,946 -
Total non-current 1,020,407 938,273 692,051
NON-CURRENT ASSETS liabilities
Other accounts receivable 6,992 4,149 30,123
Other financial assets - - 21,159 Total liabilities 1,576,837 1,561,673 1,389,954
Inventories, net 7,752 7,752 7,752
Financial investments 53,305 51,968 62,848 NET EQUITY
Property, plant and 978,205 922,040 1,027,819 Issued capital 1,134,300 1,134,300 1,253,181
equipment, net (net) Treasury shares -61,285 -61,222 -196,778
Mining concessions, 840,067 752,788 626,816 Legal reserves 1,055 1,055 3,553
exploration and Capital reserves -172,801 -174,320 20,298
development costs and
Revaluation surplus 30,307 30,307 -
other intangibles (net)
Unrealized earnings 1,121 -20,511 -
Deferred income tax - - 83,092
Accumulated earnings -284,544 -297,286 65,176
Total non-current assets 1,886,321 1,738,697 1,859,609
Total net equity 648,153 612,323 1,145,430

Total assets 2,224,990 2,173,996 2,535,294

Total liabilities and net 2,224,990 2,173,996 2,535,384
equity
158/159 2 0 1 8 A N N U A L R E P O R T

VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES

q VOLCAN COMPAÑÍA MINERA S.A.A. AND q VOLCAN COMPAÑÍA MINERA S.A.A. AND
SUBSIDIARIES CONSOLIDATED STATEMENT OF SUBSIDIARIES CONSOLIDATED STATEMENT
INCOME FOR YEARS ENDING DECEMBER 31, 2018 OF OTHER COMPREHENSIVE INCOME FOR YEARS
AND 2017 ENDING DECEMBER 31, 2018 AND 2017
(Expressed in thousands of US dollars) (Expressed in thousands of US dollars)
2018 2017
2018 2017
Net profit (loss) for the year 29,375 -477,466
Net sales 775,102 856,734
Cost of sales -546,383 -566,118
Other comprehensive income:
Gross profit 228,719 290,616

ITEMS THAT CAN NOT BE

Operating (expenses) income:
SUBSEQUENTLY RECLASSIFIED TO THE
Administrative expenses -61,877 -45,718 INCOME STATEMENT:
Sales expenses -27,185 -30,563 Unrealized earnings from investment in 950
Other income 56,297 136,065 equity instruments
Other expenses -77,361 -158,228 Revaluation of property, plant and 42,989
Income from reversal of non-financial 109,972 74,315 equipment
asset impairment Deferred income tax -280 -12,682
Loss from non-financial asset impairment -69,261 -432,147 Total other comprehensive income 670 30,307
Profit (loss) of operation 159,304 -165,660 that can not be subsequently
reclassified to the income statement

Financial income 11,586 49,706

ITEMS THAT CAN BE SUBSEQUENTLY
Financial expenses -56,425 -82,765 RECLASSIFIED TO THE INCOME
Profit (loss) before income tax 114,465 -198,719 STATEMENT:
Unrealized profit (loss) of derivative 29,734 -29,094
Profit from income tax -85,090 -278,747 financial instruments
Deferred income tax -8,772 8,583
Net profit (loss) for the year 29,375 -477,466 Total other comprehensive income 20,962 -20,511
that can be subsequently reclassified
to the income statement
Weighted average of the number of shares 3,857,668 3,858,230
in circulation (in thousands)
Other comprehensive income, net of 21,632 9,796
income tax
Basic and diluted profit (loss) per 0.008 -0.124
share
Total comprehensive income 51,007 -467,670
160/161 2 0 1 8 A N N U A L R E P O R T

VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES

q VOLCAN COMPAÑÍA MINERA S.A.A. AND

SUBSIDIARIES CONSOLIDATED STATEMENT
OF CHANGES IN NET EQUITY FOR YEARS
ENDING IN DECEMBER 31, 2018 AND 2017
(RE-EXPRESSED) AND JANUARY 1, 2017 (RE-
EXPRESSED)
(Expressed in thousands of US dollars)

OTHER
ISSUED TREASURY CAPITAL REVALUATION UNREALIZED ACCUMULATED
CAPITAL TOTAL
CAPITAL SHARES RESERVES SURPLUS EARNINGS EARNINGS
RESERVES US$(000)
US$(000) US$(000) US$(000) US$(000) US$(000) US$(000)
US$(000)

Balance as of January 1, 1,253,181 -196,778 3,553 20,298 - - 65,176 1,145,430

2017

Net profit for the year - - - - - - -477,466 -477,466

Reclassification -118,881 135,723 41,490 -194,337 - - 136,005 -
Designation of legal reserves - - 11,845 - - - -11,845 -
Other comprehensive - - - - 30,307 -20,511 - 9,796
income for the year
Application of accumulated - - -55,833 - - - 55,833 -
loss
Distribution of dividends - - - - - - -30,454 -30,454
Increase of treasury shares - -167 - -281 - - - -448
Accumulated earnings from - - - - - - -15,261 -15,261
subsidiaries incorporated in
2017
Adjustments - - - - - - -19,274 -19,274

Balance as of December 1,134,300 -61,222 1,055 -174,320 30,307 -20,511 -297,286 612,323
31, 2017

Net profit for the year - - - - - - 29,375 29,375

Other comprehensive - - - - - 21,632 - 21,632
income for the year
Distribution of dividends - - - - - - -16,641 -16,641
Adjustments - -63 - 1,519 - - 8 1,464

Balance as of December 1,134,300 -61,285 1,055 -172,801 30,307 1,121 -284,544 648,153
31, 2018
162/163 2 0 1 8 A N N U A L R E P O R T

VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES

q VOLCAN COMPAÑÍA MINERA S.A.A. AND

SUBSIDIARIES CONSOLIDATED CASH FLOW
STATEMENTS FOR YEARS ENDING DECEMBER
31, 2018 AND 2017
(Expressed in thousands of US dollars)

2018 2017 2018 2017

ACTIVIDADES DE OPERACIÓN: FINANCING ACTIVITIES:

OPERATING ACTIVITIES: Collections Collections corresponding to:
corresponding to: Acquisition of financial obligations 223,515 240,000
Sale of goods 909,295 961,891 Acquisition of other financial liabilities 41,362 33,842
Return of balance in favor of extracted 20,456 49,054 Payments corresponding to:
material
Amortization of financial obligations -244,513 -251,471
Payments corresponding to:
Amortization of overdrafts and other -50,968 -64,129
Suppliers of goods and services -499,473 -559,271 financial liabilities
Payments to and on behalf of employees -103,668 -95,357 Payment of interest -36,286 -36,526
Income tax -32,604 -22,359 Payment of dividends -14,908 -30,454
Royalties -16,827 -16,132 NET CASH FROM FINANCING -81,798 -108,738
Financial hedging instruments, net -16,869 -15,007 ACTIVITIES
Net cash and cash equivalents 260,310 302,819
provided by operating activities NET REDUCTION IN CASH AND CASH -38,879 -39,116
EQUIVALENT
INVESTMENT ACTIVITIES:
Collections corresponding to: CASH AND CASH EQUIVALENT AT YEAR 101,829 140,945
OPENING
Other charges related to investment 1,689 1,920
activities
Payments corresponding to: CASH AND CASH EQUIVALENT AT YEAR 62,950 101,829
END
Acquisition of subsidiaries in prior years -17,217 -18,017
Purchase of property, plant and -87,341 -108,486
equipment
Purchase of intangible assets -114,522 -108,614
NET CASH APPLIED TO INVESTMENT -217,391 -233,197
ACTIVITIES
164/165 2 0 1 8 A N N U A L R E P O R T

VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES

LIABILITIES AND
2018 2017 01.01.2017
EQUITY
qVOLCAN COMPAÑÍA MINERA S.A.A.
SEPARATE STATEMENTS OF FINANCIAL CURRENT LIABILITIES
POSITION AS OF DECEMBER 31, 2018 AND 2017 Bank overdrafts 34 4,004 18,932
(RE-EXPRESSED) AND JANUARY 1, 2017 (RE-
Financial obligations 204,759 187,601 258,727
EXPRESSED)
(Expressed in thousands of US dollars) Trade accounts payable 99,675 101,997 109,501
Accounts payable to 32,563 85,981 361,490
ASSETS 2018 2017 01.01.2017 related parties
Other accounts payable 52,032 35,188 45,279
CURRENT ASSETS
Other financial liabilities 48,218 113,802 101,981
Cash and cash equivalent 36,691 60,070 68,405
Total current liabilities 437,281 528,573 895,910
Trade accounts receivable, 14,135 31,047 30,845
net
Accounts receivable from 511,522 541,034 1,230,819 NON-CURRENT
related parties LIABILITIES
Other accounts receivable 37,761 27,825 81,093 Financial obligations 575,429 608,987 542,555
(net) Other financial liabilities - - 24,570
Other financial assets 640 42,454 38,295 Provisions 104,669 87,312 48,809
Inventories, net 19,600 21,048 23,692 Deferred income tax 67,415 71,797 -
Total current assets 620,349 723,478 1,473,149 Total non-current 747,513 768,096 615,934
liabilities
NON-CURRENT ASSETS
Other accounts receivable 874 605 6,916 Total liabilities 1,184,794 1,296,669 1,511,844
Other financial assets - - 21,159
Investment in subsidiaries 1,046,735 1,033,898 627,185 NET EQUITY
Property, plant and 265,637 270,170 269,181 Issued capital 1,134,301 1,134,301 1,253,181
equipment, net Treasury shares - - -196,776
Mining concessions, 424,035 427,141 282,029 Legal reserves - - 12,349
exploration and Capital reserves - - -
development costs and
Revaluation surplus - - -
other mining assets (net)
Unrealized earnings 451 -12,190 -
Deferred income tax - - 51,121
Accumulated earnings 38,084 36,512 150,142
Total non-current assets 1,737,281 1,731,814 1,257,591
Total net equity 1,172,836 1,158,623 1,218,896

Total assets 2,357,630 2,455,292 2,730,740

Total liabilities and net 2,357,630 2,455,292 2,730,740
equity
166/167 2 0 1 8 A N N U A L R E P O R T

VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES

q VOLCAN COMPAÑÍA MINERA S.A.A. q VOLCAN COMPAÑÍA MINERA S.A.A.

SEPARATE STATEMENTS OF INCOME FOR SEPARATE STATEMENTS OF OTHER
YEARS ENDING DECEMBER 31, 2018 AND 2017 COMPREHENSIVE INCOME FOR YEARS ENDING
(Expressed in thousands of US dollars) DECEMBER 31, 2018 AND 2017
(Expressed in thousands of US dollars)
2018 2017
2018 2017
Net sales 411,746 441,928
Cost of sales -284,162 -318,980 Net profit (loss) for the year 9,856 -119,250
Gross profit 127,584 122,948
Other comprehensive income:
Operating (expenses) income:
Administrative expenses -39,941 -36,473 ITEMS THAT CAN BE SUBSEQUENTLY
RECLASSIFIED TO INCOME FOR THE
Sales expenses -14,367 -18,328
YEAR:
Dividends from subsidiaries 60,870 249,131
Unrealized income from derivative financial 17,931 -17,291
Other income 35,876 100,274 instruments
Other expenses -39,582 -52,186 Income tax -5,290 5,101
Income from reversal of non-financial 0 12,825
asset impairment
Other comprehensive income, net of 12,641 -12,190
Loss from non-financial asset impairment -76,187 -345,357 income tax
Operating income 54,253 32,834
Total comprehensive income 22,497 -131,440
Financial income 26,309 61,577
Financial expenses -52,688 -52,800
Income before income tax 27,874 41,611

Income tax -18,018 -160,861

Net profit (loss) for the year 9,856 -119,250

Weighted average of the number of shares 3,857,975 3,858,230

in circulation (in thousands)

Basic and diluted profit (loss) per 0.003 -0.031

share
168/169 2 0 1 8 A N N U A L R E P O R T

VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES

q VOLCAN COMPAÑÍA MINERA S.A.A.

SEPARATE STATEMENTS OF CHANGES IN NET
EQUITY AS OF DECEMBER 31, 2018 AND 2017 (RE-
EXPRESSED) AND JANUARY 1, 2017
(Expressed in thousands of US dollars)

ISSUED TREASURY LEGAL CAPITAL UNREALIZED ACCUMULATED TOTAL

CAPITAL SHARES RESERVES RESERVES EARNINGS EARNINGS US$(000)
US$(000) US$(000) US$(000) US$(000) US$(000) US$(000)

Balance as of January 1, 2017 1,253,181 -196,776 - 12,349 - 150,142 1,218,896

Net profit for the year - - - - - -119,250 -119,250

Transfer to legal reserves - - 9,364 - - -9,364 -
Repurchase of own shares -118,881 196,776 - - - 77,895
Other comprehensive income - - - - -12,190 - -12,190
Application of accumulated loss - - -9,364 -12,349 - 21,713 -
Distribution of dividends - - - - - -31,251 -31,251
Adjustments - - - - - 24,523 24,523

Balance as of December 31, 2017 1,134,300 0 0 0 -12,190 36,513 1,158,623

Net profit for the year - - - - - 9,856 9,856

Other comprehensive income - - - - 12,641 - 12,641
Distribution of dividends - - - - - -16,641 -16,641
Adjustments - - - - - 8,357 8,357

Balance as of December 31, 2018 1,134,300 0 0 451 38,085 1,172,836

170/171 2 0 1 8 A N N U A L R E P O R T

VOLCAN COMPAÑÍA MINERA S.A.A. AND SUBSIDIARIES

q VOLCAN COMPAÑÍA MINERA S.A.A.

SEPARATE CASH FLOW STATEMENTS FOR
YEARS ENDING DECEMBER 31, 2018 AND 2017
(Expressed in thousands of US dollars)

2018 2017 2018 2017

ACTIVIDADES DE OPERACIÓN: NET CASH APPLIED TO INVESTMENT

OPERATING ACTIVITIES: Collections ACTIVITIES
corresponding to: FINANCING ACTIVITIES:
Sales collections 490,000 536,888 Collections corresponding to: 223,515 220,000
Return of balance in favor of extracted - 10,988 Acquisition of financial obligations 41,362 33,842
material Acquisition of other financial liabilities
Other operating charges 120,714 169,613 Payments corresponding to: -240,489 -226,671
Payments corresponding to: Amortization of financial obligations -50,968 -52,806
Payments to suppliers and third parties -351,337 -418,994 Amortization of overdrafts and other -34,957 -34,429
Payments to workers -62,882 -62,199 financial liabilities
Income tax payments -10,919 -21,647 Payment of interest -16,641 -31,251
Royalty payments -8,475 -6,530 NET CASH FROM FINANCING -78,178 -91,315
Hedging expenditures -10,175 -12,509 ACTIVITIES
Efectivo neto proveniente de las 166,926 195,610
actividades de operación NET REDUCTION OF CASH AND CASH -23,379 -8,335
EQUIVALENT
NET CASH FROM OPERATING
ACTIVITIES CASH AND CASH EQUIVALENT AT YEAR 60,070 68,405
INVESTMENT ACTIVITIES: OPENING
Collections corresponding to: 1,689 1,640
Other cash charges related to investment CASH AND CASH EQUIVALENT AT YEAR 36,691 60,070
activities END
Payments corresponding to: -30,656 -30,559
Purchase of property, plant and -17,217 -18,017
equipment
Acquisition of subsidiaries in prior years -65,943 -65,694
Purchase of intangible assets -112,127 -112,630
172/173 2 0 1 8 A N N U A L R E P O R T

14.
LEGAL AFFAIRS

qVOLCAN COMPAÑÍA MINERA S.A.A.

Company Management, based on the opinion of external and internal legal

counsel, has undertaken a review of all cases related to tax, labor, civil and
administrative matters, among others, and has established a provision for
probable contingencies of USD 14.3 million, which as of December 31, 2018 is
assigned to the item Provisions (USD 11.9 million as of December 31, 2017).
Company Management and its legal counsel are of the opinion that this provision
covers probable contingencies and additional provisions are not necessary.

For possible contingencies, external and internal legal counsel for the Company
has determined a total of USD 39.4 million as of December 31, 2018.
174/175 2 0 1 8 A N N U A L R E P O R T

LABOR CASES ADMINISTRATIVE SANCTION PROCEDURES AND ADMINISTRATIVE

As of December 31, 2018, the Company faces labor lawsuits with a probable
contingencies level of USD 6.8 million, which is presented in the Provisions
item, and with a possible contingency level of USD 14.0 million (USD 6.5 million
and USD 23.5 million as of December 31, 2017, respectively) for compensation
for occupational illness, reimbursement of social benefits, payment of profits,
replacement of workers and others.
There are also two legal processes (labor actions and 1998 production bonuses)
for which an amount claimed has not been determined. This amount may be
determined on the date of sentencing, in the unlikely event that the ruling is
unfavorable to the Company.
LITIGATION ACTIONS
The Company has several environmental, occupational health and safety and
labor safety cases pending before the following regulatory entities: National
Water Authority – Local Water Authorities, Ministry of Labor and Employment
Promotion (National Superintendent of Labor Enforcement), Ministry of Energy
and Mines, Ministry of Production, Supervisory Agency of Investment in Energy
and Mining (OSINERGMIN), and the Environmental Evaluation and Enforcement
Organism (OEFA) for alleged violations of various environmental regulations and
the Occupational Health and Safety Regulation, with probable contingencies
assigned to the Provisions item for USD 3.0 million and possible contingencies for
USD 2.8 million as of December 31, 2018 (USD 4.7 million and USD 0.4 million
as of December 31, 2017, respectively).

TAX CASES
As of December 31, 2018 and 2017, the Company has several administrative
cases pending with the National Superintendent of Tax Administration (SUNAT)
and the Tax Court for rulings related to determination of taxes, fines and interest.
Company management and its legal counsel, based on reasons in fact and law,
are of the opinion that final resolution of these cases will not result in significant
additional liabilities for Volcan.

Rulings on taxes, fines and interest correspond mainly to differences in criteria

regarding determination of the taxable bases for payment of the third-category
income tax and general sales tax (VAT) for the 1998-2010 period, and in the
opinion of the Superintendent of Tax Administration (SUNAT), failure to pay taxes
and withhold taxes from third parties. The Company has probable contingencies
for USD 4.2 million as of December 31, 2018.

In addition, as of December 31, 2018, the Company had two administrative tax
cases pending before municipalities. Both contingencies, qualified as probable,
total USD 0.3 million.

Company Management estimates that these processes represent a probably

contingency of USD 4.5 million assigned to the Provisions line as of December
31, 2018 (USD 0.6 million as of December 31, 2017).

In addition, there are other tax cases qualified as possible, which include expenses
questioned by the National Superintendent of Tax Administration (SUNAT) for not
complying with the principle of causality or not having the necessary support,
among other associated concepts. These possible contingencies total USD 22.6
million as of December 31, 2018.
176/177
qCOMPAÑÍA MINERA CHUNGAR S.A.C.
Company Management, based on the opinion of external and internal legal
counsel, has undertaken a review of all cases related to tax, labor, civil and
administrative matters, among others, and has established a provision for
probable contingencies of USD 3.0 million, which as of December 31, 2018
is assigned to the Provisions item (USD 4.2 million as of December 31, 2017).
Company Management and its legal counsel are of the opinion that this provision
covers probable contingencies and additional provisions are not necessary.
For possible contingencies, external legal counsel for the Company has
determined a total of USD 2.5 million as of December 31, 2018.
LABOR CASES
As of December 31, 2018, Chungar faces labor lawsuits with a probable
contingencies level of USD 0.3 million, which is presented in the Provisions
item, and with a possible contingency level of USD 0.02 million (USD 0.5 million
and USD 0.4 million as of December 31, 2017, respectively) for payment of
compensation for damages for occupational illness, reimbursement of social
benefits, and others currently in the appeals and/or sentencing stage.
TAX CASES
As of December 31, 2018 and 2017, Compañía Minera Chungar S.A.C. has
several administrative cases pending with the National Superintendent of Tax
Administration (SUNAT) and the Tax Court for rulings related to determination of
taxes, fines and interest.
Rulings on taxes, fines and interest correspond mainly to differences in criteria
regarding determination of the taxable bases for payment of the third-category
income tax and general sales tax (VAT) for the 2001-2005 period and the 2012-
2014 period, and in the opinion of the Superintendent of Tax Administration
(SUNAT), failure to pay taxes and withhold taxes from third parties. To date, these
cases are being challenged administratively in complaints filed with the National
Superintendent of Tax Administration (SUNAT) and appeals before the Tax Court,
as well as in the courts of law.
The Subsidiary has tax administrative procedures qualified as probable
contingencies in the Provisions item for USD 0.5 million as of December 31, 2018
(USD 0.4 million as of December 31, 2017).
2 0 1 8 A N N U A L R E P O R T
Finally, there are other contingencies originating in conceptual discrepancies with
the Tax Administration, which have been qualified as possible and total USD 2.5
million.
ADMINISTRATIVE SANCTION PROCEDURES AND ADMINISTRATIVE
LITIGATION ACTIONS
The Subsidiary has several environmental, occupational health and safety and
labor safety cases pending before the following regulatory entities: National Water
Authority – Local Water Authorities, Ministry of Labor and Employment Promotion
(National Superintendent of Labor Enforcement), Ministry of Energy and Mines,
Ministry of Production, OSINERGMIN, and OEFA, for alleged violations of various
environmental standards and Occupational Health and Safety Regulations. These
cases are qualified as probable with a total contingency of USD 2.2 million, which
on December 31, 2018 was assigned to the Provisions line (USD 3.3 million as of
December 31, 2017).
qEMPRESA ADMINISTRADORA CERRO S.A.C.
Company Management, based on the opinion of external and internal legal
counsel, has undertaken a review of all cases related to tax, labor, civil and
administrative matters, among others, and has established a provision for
probable contingencies of USD 4.2 million, which as of December 31, 2018
is assigned to the Provisions item (USD 4.5 million as of December 31, 2017).
Company Management and its legal counsel are of the opinion that this provision
covers probable contingencies and additional provisions are not necessary.
For possible contingencies, external legal counsel for the Company has
determined a total of USD 5.4 million as of December 31, 2018.
LABOR CASES
As of December 31, 2018, the Subsidiary faces labor lawsuits with a probable
contingencies level of USD 3.0 million, which is presented in the Provisions
item, and with a possible contingency level of USD 2.9 million (USD 3.3 million
and USD 0.4 million as of December 31, 2017, respectively) for payment of
compensation for damages for occupational illness, reimbursement of social
benefits, reimbursement of profits, payment of production bonuses and others
currently in the appeals and/or sentencing stage.
178/179
TAX CASES
As of December 31, 2018 and 2017, the Subsidiary has several administrative
cases pending with the National Superintendent of Tax Administration (SUNAT)
and the Tax Court for rulings related to determination of taxes, fines and interest.
The rulings on taxes, fines and interest are due, in the opinion of the National
Superintendent of Tax Administration (SUNAT) , to failure to pay taxes, and also
because of differences in criteria for determination of the taxable bases for
payment of the third-category income tax for 2012 and 2014, as well as a tax
refund for 2014. To date, these cases are being challenged administratively.
The Subsidiary has tax administrative procedures qualified as probable
contingencies in the Provisions item for USD 1.1 million as of December 31, 2018
(USD 1.2 million as of December 31, 2017).
Finally, there are other contingencies originating in conceptual discrepancies with
the Tax Administration, which have been qualified as possible and total USD 2.5
2 0 1 8 A N N U A L R E P O R T
ADMINISTRATIVE SANCTION PROCEDURES AND ADMINISTRATIVE
LITIGATION ACTIONS
The Subsidiary has several environmental, occupational health and safety and
labor safety cases pending before the following regulatory entities: National Water
Authority – Local Water Authorities, Ministry of Labor and Employment Promotion
(National Superintendent of Labor Enforcement), Ministry of Energy and Mines,
Ministry of Production, OSINERGMIN, and OEFA, for alleged violations of various
environmental standards and Occupational Health and Safety Regulations. These
cases are qualified as probable with a total contingency of USD 0.08 million,
which on December 31, 2018 was assigned to Provisions (USD 0.7 million as of
December 31, 2017).
qEMPRESA EXPLOTADORA DE VINCHOS
LTDA S.A.C.
Company Management, based on the opinion of external and internal legal
counsel, has undertaken a review of all cases related to tax, labor, civil and
administrative matters, among others, and has established a provision for
probable contingencies of USD 0.3 million, which as of December 31, 2018
is assigned to the Provisions item (USD 0.3 million as of December 31, 2017).
Company Management and its legal counsel are of the opinion that this provision
covers probable contingencies and additional provisions are not necessary.
qHIDROELÉCTRICA HUANCHOR S.A.C.
Company Management, based on the opinion of external and internal legal
counsel, has undertaken a review of all cases related to tax, labor, civil and
administrative matters, among others, and has established a provision for
probable contingencies of USD 0.1 million, which as of December 31, 2018
is assigned to the Provisions item (USD 0.1 million as of December 31, 2017).
Company Management and its legal counsel are of the opinion that this provision
covers probable contingencies and additional provisions are not necessary.
180/181 2 0 1 8 A N N U A L R E P O R T

15.
STOCK INFORMATION

Shares of Volcan Compañia Minera S.A.A. are traded on the Lima Stock Exchange,
the Santiago Stock Exchange and the Latibex in Madrid.

qVOLCAN COMPAÑIA MINERA S.A.A. STOCK

SYMBOLS

Tickers
SANTIAGO BOLSA DE
LIMA STOCK
STOCK STOCK MADRID
EXCHANGE
EXCHANGE LATIBEX

Volcan Class A Common VOLCAAC1 VCMAC1

Volcan Class B Common VOLCABC1 VCMBC1 XVOLB.MC

Subscribed, paid, and registered capital as of Monday, December 31, 2018

totals PEN 3,546,617,792, represented by 1,633,414,553 class A common
shares and 2,443,157,622 class B common shares, each with a nominal value
of PEN 0.87. The subsidiary Empresa Minera Paragsha S.A.C. holds 182,920,322
class A common shares and 12,234,901 class B common shares. The subsidiary
Compañía Minera Chungar S.A.C. holds 23,442,345 class A common shares. The
subsidiary Compañía Industrial Limitada De Huacho S.A. holds 306,283 Class A
common shares.
182/183 2 0 1 8 A N N U A L R E P O R T

qSTOCK OWNERSHIP COMPOSITION Class B Common Shares

As of December 31, 2018, the share composition is as follows: SHAREHOLDER

% OWNERSHIP
PERSONA NATIONALITY CORPORATE GROUP
INTEREST

Class A Common Shares AFP Integra - Fondo 2 10.63 Legal entity Peruvian Does not apply
Prima AFP - Fondo 2 8.61 Legal entity Peruvian Does not apply
NUMBER OF
PERCENTAGE HELD
SHAREHOLDERS
% SHARE
AFP Integra - Fondo 3 8.56 Legal entity Peruvian Does not apply
Prima AFP - Fondo 3 7.23 Legal entity Peruvian Does not apply
Less than 1% 449 1.41
Profuturo AFP-PR Fondo 2 6.76 Legal entity Peruvian Does not apply
From 1% to 5% 4 9.05
Profuturo AFP-PR Fondo 3 4.92 Legal entity Peruvian Does not apply
From 5% to 10% 3 26.10
López De Romaña Dalmau Hernando 4.08 Individual Peruvian Does not apply
More than 10% 3 63.44
Diego Francisco
Total 459 100.00

Class B Common Shares

NUMBER OF
PERCENTAGE HELD % Share
SHAREHOLDERS

Less than 1% 7,932 37.15

From 1% to 5% 10 21.06
From 5% to 10% 4 31.16
More than 10% 1 10.63
Total 7,947 100.00

Of total company equity, 63.82% is held by domestic shareholders with

2,601,548,325 shares while 36.18% is held by foreign shareholders with
1,475,023,850 shares.

Shareholders holding more than 4.0% of the company's stock are as follows:

Class A Common Shares

PERSON/ CORPORATE
PRINCIPAL SHAREHOLDERS % NATIONALITY
ENTITY GROUP

Glencore International AG (*) 41.91 Legal entity

Swiss Glencore
Empresa Minera Paragsha S.A.C. 11.20 Legal entity
Peruvian Volcan
De Romaña Letts José Ignacio 10.33 Individual Peruvian Does not apply
Letts Colmenares de De Romaña Irene Florencia 9.90 Individual Peruvian Does not apply
8.38 Legal entity
Netherlands Does not apply
Blue Streak International N.V.
Antilles
Sandown Resources S.A. 7.81 Legal entity Panamanian Glencore
(*) The Glencore group, including all of its subsidiaries, owns a 55.03% share.
184/185 2 0 1 8 A N N U A L R E P O R T

qSHARE STRUCTURE PER TYPE OF INVESTOR

STOCK: VOLCABC1

STOCK: VOLCAAC1 HOLDING BY TYPE OF SHAREHOLDER OF THE STOCK OR REPRESENTATIVE NUMBER OF % OF SHARE
SHARE VALUE THAT MAKES UP THE S & P PERU SELECTIVE INDEX (AT YEAR-END) SHAREHOLDERS (3)
HOLDING BY TYPE OF SHAREHOLDER OF THE STOCK OR REPRESENTATIVE NUMBER OF % OF SHARE
SHARE VALUE THAT MAKES UP THE S & P PERU SELECTIVE INDEX (AT YEAR-END) SHAREHOLDERS (3)
1. Members of the board and senior management of the company, including 2 1.12%
1. Members of the board and senior management of the company, including 2 20.24% relatives (1)
relatives (1) 2. Company employees, not considered in point 1 above 29 0.12%
2. Company employees, not considered in point 1 above 2 0.00% 3. Individuals, not considered in points 1 and 2 above 7,650 29.04%
3. Individuals, not considered in points 1 and 2 above 418 0.50% 4. Pension funds managed by the Pension Fund Administrators under the 12 50.22%
4. Pension funds managed by the Pension Fund Administrators under the 5 0.00% supervision of the Superintendency of Banking, Insurance and AFP
supervision of the Superintendency of Banking, Insurance and AFP 5. Pension funds managed by the Pension Office (Oficina de Normalización 0.00%
5. Pension funds managed by the Pension Office (Oficina de Normalización 0.00% Previsional, ONP)
Previsional, ONP) 6. Entities associated with the Peruvian government, with the exception of 1 0.17%
6. Entities associated with the Peruvian government, with the exception of 0.00% those comprised in point 5 above
those comprised in point 5 above 7. Banks, financial institutions, municipal savings banks, SME development 5 0.50%
7. Banks, financial institutions, municipal savings banks, SME development 0.00% agencies, rural savings banks and credit unions under supervision of the
agencies, rural savings banks and credit unions under supervision of the Superintendency of Banking, Insurance and AFP
Superintendency of Banking, Insurance and AFP 8. Insurance companies under the supervision of the Superintendency of 3 0.51%
8. Insurance companies under the supervision of the Superintendency of 1 0.00% Banking, Insurance and AFP
Banking, Insurance and AFP 9. Brokers, under the supervision of the Superintendency of Securities Market 4 0.09%
9. Brokers, under the supervision of the Superintendency of Securities Market 2 0.00% (SMV)
(SMV) 10. Investment funds, mutual funds and trust funds under the scope of the 21 1.27%
10. Investment funds, mutual funds and trust funds under the scope of the 0.00% Securities Market Law and Investment Funds Law and banking trusts under
Securities Market Law and Investment Funds Law and banking trusts under the scope of the General Law of the Financial System
the scope of the General Law of the Financial System 11. Autonomous assets and bank trusts from abroad, where these can be 0.00%
11. Autonomous assets and bank trusts from abroad, where these can be 0.00% identified
identified 12. Foreign depositories that appear as shareholders in the framework of ADR or 0.00%
12. Foreign depositories that appear as shareholders in the framework of ADR or 0.00% ADS programs
ADS programs 13. Foreign depositories that appear as shareholders and are not considered in 4 1.35%
13. Foreign depositories that appear as shareholders and are not considered in 0.00% point 12
point 12 14. Foreign trustees listed as shareholders 0.00%
14. Foreign trustees listed as shareholders 0.00% 15. Entities not comprised in the points above (2) 216 15.62%
15. Entities not comprised in the points above (2) 29 79.27% 16. Shares owned by the S&P/BVL Peru Select Index or representative value of 0.00%
16. Shares owned by the S&P/BVL Peru Select Index or representative value of 0.00% these shares, in the company's portfolio
these shares, in the company’s portfolio Total 7,947 100.00%
Total 459 100.00%
HOLDING BY TYPE OF STOCK OR REPRESENTATIVE SHARE VALUE THAT MAKES NUMBER OF
% OF SHARE
UP THE S&P/BVL PERU SELECT INDEX, BASED ON RESIDENCE (AT YEAR-END) SHAREHOLDERS
HOLDING BY TYPE OF STOCK OR REPRESENTATIVE SHARE VALUE THAT MAKES NUMBER OF
UP THE S&P/BVL PERU SELECT INDEX, BASED ON RESIDENCE (AT YEAR-END SHAREHOLDERS
% OF SHARE
Domiciliados 7,657 84.05%
Domiciliados 423 33.56% No domiciliados 290 15.95%
No domiciliados 36 66.44% Total 7,947 100.00%
Total 459 100.00% (1) The term “Relatives” according to the regulation on indirect ownership, relationship and economic groups.
(2) The term “Entities” according to the regulation on indirect ownership, relationship and economic groups.
(3) Two decimals.
186/187 2 0 1 8 A N N U A L R E P O R T

qDIVIDENDS Class B Common Shares

Cash dividends paid to unrestricted profits as of June 30, 2018: MONTH

OPENING CLOSING MAXIMUM MINIMUM PRICE
PEN PEN PEN PEN AVERAGE PEN

Dividendos en efectivo pagados (PEN) January 1.360 1.370 1.440 1.350 1.385
February 1.360 1.230 1.370 1.050 1.208
DIVIDENDOS PAGADOS
March 1.230 1.200 1.300 1.100 1.173
August 2018 PEN 0.0130 for each class A common share April 1.210 1.170 1.210 1.130 1.157
August 2018 0.013650 por cada acción común clase “B” May 1.170 0.990 1.170 0.980 1.056
June 1.000 0.810 1.050 0.810 0.965
July 0.810 0.810 0.880 0.730 0.803
qSTOCK PRICES ON THE LIMA STOCK EXCHANGE August 0.810 0.820 0.830 0.710 0.769
September 0.810 0.770 0.830 0.710 0.746
In 2018, the market prices of class A and class B common shares, expressed in October 0.770 0.620 0.780 0.580 0.660
Nuevos Soles, were as follows:
November 0.620 0.750 0.770 0.600 0.708
December 0.770 0.710 0.780 0.700 0.732
Class A Common Shares Source: Lima Stock Exchange

OPENING CLOSING MAXIMUM MINIMUM PRICE

MONTH
PEN PEN PEN PEN AVERAGE PEN Latibex Prices 2018
January 4.200 4.200 4.200 4.200 4.229 MONTH
OPENING CLOSING MAXIMUM MINIMUM PRICE PRECIO

February -.- -.- -.- -.- 4.200

PEN PEN PEN PEN AVERAGE PEN PROMEDIO

March 4.000 3.590 4.000 3.590 3.708 January 4.088 1.27 1.41 1.43 1.31 1.41
April 3.600 3.590 3.600 3.590 3.592 February 4.083 1.36 1.14 1.36 1.03 1.13
May 3.590 3.590 3.590 3.590 3.590 March 4.062 1.14 1.10 1.22 1.10 1.12
June 3.590 3.590 3.590 3.590 3.589 April 4.156 1.12 1.11 1.21 1.11 1.20
July 3.590 3.590 3.590 3.590 3.590 May 3.978 1.05 1.05 1.15 0.78 0.91
August 3.580 3.580 3.580 3.580 3.580 June 3.930 1.04 0.76 1.04 0.67 0.77
September 3.580 3.580 3.580 3.580 3.580 July 3.946 0.77 0.70 0.83 0.69 0.73
October 3.580 3.580 3.580 3.580 3.580 August 3.938 0.70 0.76 0.76 0.69 0.72
November 3.580 3.500 3.580 3.500 3.567 September 3.950 0.76 0.78 0.78 0.69 0.78
December -.- -.- -.- -.- -.- October 3.909 0.77 0.63 0.63 0.43 0.58
November 3.997 0.64 0.69 0.69 0.51 0.64
Source: Lima Stock Exchange
December 4.150 0.72 0.58 0.79 0.56 0.61
Sources: Madrid Stock Exchange, Peruvian Superintendent of Banks, Insurance and Private Pension Funds

qCORPORATE BONDS

On January 26, 2012, as part of an international bond issue under Rule 144 and
Regulation S of the United States Securities Act of 1933, the Company placed
corporate bonds for up to USD 600 million, with a 10-year term and a fixed annual
interest rate of 5.375%.
188/189 2 0 1 8 A N N U A L R E P O R T

16.
CORPORATE INFORMATION

qPROFESSIONAL BACKGROUND OF SENIOR

MANAGEMENT:

Juan Ignacio Rosado Gómez de la Torre

Chief executive officer since April 2014. He served as deputy chief executive officer
from June 2010 until being appointed chief executive officer. He previously
served as vice chairman and finance director at Hochschild Mining Plc. He was
a senior project manager at McKinsey & Company from August 2000 to January
2005. He served on the Board of Lake Shore Gold Corp. from March 2008 to June
2010 and the Board of Zincore Metals in 2010 (both companies are listed on the
Toronto Stock Exchange).

Mr. Rosado holds a degree in economics from Universidad del Pacifico and an
MBA from Ross School of Business, University of Michigan.

Carlos Francisco Fernández Navarro

Executive vice president since January 2018. He has previously served as
manager of business development - Zinc Division of Glencore International AG,
asset manager of South America - Zinc Division of Glencore International AG and
as investor relations manager for Glencore International AG. He has a degree in
applied mathematics from Yale University.
190/191
Aldo de la Cruz Peceros
Vice president of operations since January 2018. He previously served as vice
president of operations for Mina Sinchy Wayra Glencore Zinc, from October 2015
to December 2017. He was also senior technical advisor at Glencore Zinc South
America from August 2012 to October 2015. He was vice president of operations
at Mopani Copper Mines Plc Zambia of Glencore Copper from April 2010 to June
2012. Senior technical advisor at Glencore Copper from November 2009 to March
2010.
From 2003 to 2009 he worked in different positions at Glencore as general
manager at Kamoto Underground Mine Congo DRC, general manager at Mufulira
Mine Zambia, Project Manager at Nkana Mine, Mopani Copper Mines Plc Zambia.
From 1999 to 2003, he served as mine supervisor in Mina Yauliyacu, Peru.
Mr. de la Cruz has a degree in mining engineering from Universidad Nacional de
Ingeniería and holds a master’s degree in mining management from GERENS.
He has a postgraduate diploma in mining management from Universidad del
Pacífico.
Jorge Leoncio Murillo Núñez
Vice president of administration and finance since January 2018. He served as
central financial manager since December 2013 and as management control
manager from January 2011 until December 2013.
His previous positions included financial consultant for KPMG Consulting,
financial controller for Peru and Colombia at Bearing Point, deputy corporate
financial planning director at Grupo Gloria and budget manager at Hochschild
Mining Plc.
Mr. Murillo has an industrial engineering degree from Pontificia Universidad
Católica de Perú, a certificate in finance from the same university, and an MBA
from Universidad ESAN.
Vanessa Aita de Marzi
Sales manager since April 2018. She joined Volcan in May 2012, where she
worked as contract administrator from February 2014 to May 2016, and was then
appointed deputy manager of sales planning.
Ms. Aita holds a degree in international business and administration from the
Universidad de Lima.
Alberto Víctor Manuel Gazzo Baca
Human resources manager since December 2012. Prior to that he was human
resources manager for Latin America at American Cyanamid Company, human
resources director for Latin America at NCH, and general manager of human and
2 0 1 8 A N N U A L R E P O R T
organizational development at Votorantim Metais in Brazil and Peru.
Mr. Gazzo has a doctorate in human sciences from Pontificia Universidad Católica
de Rio de Janeiro in Brazil. He holds a degree in law, philosophy, and theology. He
has also earned master's degrees in business management, quality management,
and human resources management in Río de Janeiro.
Roberto Juan Servat Pereira de Sousa
Corporate social responsibility and labor relations manager since December 2010.
He began working with Volcan in January 2007 as legal advisor to the chairman
of the Board of Directors. He previously served as deputy minister of labor, deputy
minister of social promotion, an advisor to the minister's office, general director
of legal advising, and member of the Advisory Commission of Peru's Ministry of
Labor and Employment Promotion, a judge in the Bankruptcy Division in Matters
of Fair Competition and Intellectual Property of INDECOPI, and member of the
Board of the Superintendency of Healthcare Service Providers.
He is currently a member of the Labor Affairs Commission of the Lima Chamber of
Commerce and the Board of the Peruvian Society of Labor and Social Security Law.
He is a professor at Universidad de Lima.
Mr. Servat earned a law degree from Universidad de Lima and a master's degree
in public administration from the Instituto Ortega y Gasset, affiliated with
Universidad Complutense de Madrid.
Juan Alberto Begazo Vizcarra
Audit manager since July 2010. He joined Volcan in December 2008 as
administration and control manager. He previously served as CFO at Gold Fields,
general controller at Doe Run, and accounting manager at Centromin.
Mr. Begazo is a certified public accountant and member of the Committee of
Experts in Mining Accounting, and he teaches in the mining management
certificate program at Universidad de Lima.
Alfonso Rebaza González
Legal counsel since September 2010. He has experience in corporate and mining
law, arbitration and contracts. He was previously a partner with Estudio Osterling
and professor of civil law at Pontificia Universidad Católica del Peru.
Mr. Rebaza earned a law degree from Pontificia Universidad Católica del Peru.
Mario Eduardo De las Casas Vizquerra
Logistics manager at Volcan since February 2010. From 2007 to 2010 he served
as deputy manager of contracts, logistics and supplies for the Project Division
of Votorantim Metais, Cajamarquilla Refinery, and from 1998 to 2007 he was
192/193
logistics manager for Volcan. He worked in the logistics division of Buenaventura
S.A. and Minera Yanacocha S.A. from 1990 to 1998.
Mr. De las Casas has a degree in business administration from Universidad Ricardo
Palma, completed the PADE program in logistics at Universidad ESAN, and has an
MBA from Universidad de Piura.
Álvaro Luis Cabrera Ramírez
Energy manager. He joined Volcan in March 2012. During his career, he has served
as energy operations manager and he has been the manager of his division at
Sociedad Minera Corona since 2004.
Mr. Cabrera has a degree in electronic engineering from Universidad Peruana
de Ciencias Aplicadas (UPC), a master's degree in business administration from
EADA (Barcelona) and a postgraduate qualification in energy, electricity and gas
law (UPC).
José Edmundo Montoya Stahl
Chief mining development officer since January 2018, he previously served as
chief business development officer since June 2010. He previously worked at
major corporations such as Votorantim Metais, Exsa S.A., and Minera Yanacocha
S.R.L., occupying positions in production and planning for underground and
open pit mines.
Mr. Montoya has a mining engineering degree from Pontificia Universidad
Católica del Peru and a master’s degree in mining economics from Colorado School
of Mines. He participated in executive development programs at Universidad de
Piura and Fundación Don Cabral (Brazil).
Eduardo Malpartida Espinoza
Occupational health and safety manager since January 2018, he was previously
operations manager of the Alpamarca UEA since September 2014. He previously
served as operations manager at BRECA Grupo Empresarial – Administración
de Empresas S.A.C., general superintendent at Grupo ARUNTANI – Anabí and
operations manager at the Arcata, Selene and Pallancata mines owned by Grupo
Hochschild Mining Plc.
He has a degree in mining engineering from Universidad Nacional Daniel Alcides
Carrión in Cerro de Pasco and a master's degree in operations and logistics
management from EOI Escuela de Negocios in Madrid, Spain.
Juan Luis Arenas Gómez Sánchez
He joined the Company in September 2016 as industrial plant manager. He is a
petrochemical engineer with a degree from Universidad Nacional de Ingeniería
2 0 1 8 A N N U A L R E P O R T
and holds an MBA from ESAN. He also has completed postgraduate studies in
project management at Pontificia Universidad Católica.
He has worked in companies such as Petroperú, Cervecería Backus y Johnston
and Corporación José R. Lindley. From 2000 to 2016, he worked in San Miguel
Industrias Pet S.A. in the plastics sector as corporate production manager.
Edgardo Zamora Pérez
Corporate planning manager since January 2018, he previously served as
operations manager of the Yauli UEA since September 2012. He joined Volcan in
May 2000. In 2007 he became general superintendent of Empresa Administradora
Chungar S.A.C. and from 2010 to 2012 he served as operations manager.
He has 12 years of professional experience in mine operations. He served as
planning superintendent until March 2007.
Mr. Zamora earned a degree in mining engineering from Universidad Nacional
Mayor de San Marcos.
Carlos Manuel García Zapata
San Cristóbal - Carahuacra operations CEO since November 2018, he previously
served as operations manager at Andaychagua since February 2014. He
served in Volcan as production superintendent at the Yauli UEA in 2013-2014,
superintendent of San Cristóbal mine in 2012, superintendent of safety and
hygiene at Minera Yauli in 2011, and deputy superintendent of safety and
hygiene at Minera Yauli (July 2009 to 2010).
During his career, he has worked as assistant vice chairman of operations for Doe
Run Perú from 2005 to 2009, as head of security and other positions in mining
operations in the Cobriza, Cerro de Pasco and Yauricocha.
Mr. Garcia is a mining engineer with a degree from the Universidad Nacional de
Ingeniería, an MBA from Universidad Río de la Plata, and is a specialist in mining
safety and hygiene and mine rescue (University of Missouri–Rolla/ USA) - Doe Run
Company - MSHA USA
Francisco Grimaldo Zapata
Alpamarca operations manager since January 2018, he previously served as
operations manager of the San Cristóbal (Yauli) since October 2016. From January
2006 to January 2016, he served as CEO of the Yauliyacu unit and operations and
project manager of the Iscaycruz unit of Empresa Minera Los Quenuales – Grupo
Glencore. He also served as general superintendent of Cerro de Pasco in Volcan
from September 1999 to January 2005 and previously worked for Centromin
Perú.
194/195
Mr. Grimaldo earned a degree in mining engineering from Universidad Nacional
de Ingeniería and an MBA from ESAN.
Adrián Felipe Corihuamán Mayta
Gerente de Operaciones mina San Cristóbal desde diciembre 2018, antes gerente
San Cristóbal Mine operations manager since December 2018, he was previously
operations manager at Carahuacra (Yauli) since July 2017. He served as project
manager at SAME and operations manager at Quiruvilca mine since June 2016.
Prior to that, he was operations manager at Cía Minera Caylloma, Cía Minera
Arcata, and Cía Minera Ares, all part of Grupo Hochschild Mining Plc, from January
2003 to May 2016.
Mr. Corihuamán has a mining engineering degree from Universidad Nacional de
Tacna and studied business administration at CEPADE.
Reynol Renzo Fuentes Fernández
Operations manager at Ticlio (Yauli) since September 2017. He previously worked
at Compañía Minera Milpo S.A., in the Porvenir-UM Atacocha unit, as planning
and development manager at Pasco.
2 0 1 8 A N N U A L R E P O R T
Mr. Fuentes has a degree in mining engineering from Universidad Nacional
Jorge Basadre Grohmann in Tacna, an international master's degree in leadership
from EADA Business School and a master's degree in strategic management from
CENTRUM Católica.
James Atalaya Chacón
Operations manager of the Chungar UEA since January 2016. Mr. Atalaya joined
the Company in February 2015 as planning superintendent at the Chungar UEA.
Prior to that, he served as planning superintendent at Compañía Minera Ares S.A.
and as mining superintendent at Minsur S.A.
Mr. Atalaya has a degree in mining engineering from Pontificia Universidad
Católica del Perú, a diploma in mining company management from Universidad
del Pacífico, a diploma in finance from the Monterrey Institute of Technology and
Higher Education, Mexico, and he also graduated from the master's program in
strategic company management at Centrum Católica.
Julio César Beraún Sánchez
Operations manager of the Cerro de Pasco unit since September 2017. Previously,
he served as operations manager at Carahuacra starting in February 2016.
Before that, he was technical services and mine manager at El Mochito – Nyrstar
Honduras, from September 2014 to October 2016. He was also operations
manager at Contonga – Nyrstar Perú from September 2013 to August 2014. He
served as operations manager at PD&B Services LDT Grand Cayman from August
2012 to April 2013 and key accounts manager and chief engineer at Voladura,
EXSA SA, from August 2005 to May 2012.
Mr. Beraún has a degree in mining engineering from Pontificia Universidad
Católica del Perú and an MBA from Centrum, Pontificia Universidad Católica del
Perú.
Percy Mamani Ureta
Operations manager of the Chungar UEA since March 2018. He previously served
as superintendent of occupational safety and health in Chungar and Alpamarca in
Zone II and in the same position in Andaychagua, San Cristobal and Carahuacra in
Zone I of Yauli since 2008. He was also manager of occupational health, safety and
the environment program at the Torrecillas UEA for Empresa Australiana Mundo
Minerales SAC in Caraveli Arequipa in 2011. Mr. Mamani has a degree in geological
engineering from the Universidad Nacional de San Agustín de Arequipa, holds
a teaching degree in electronics at IS Pedro P. Diaz, is an authorized auditor for
the periodic evaluation of the Health and Safety Management System System of
the Ministry of Labor with the Registry N° 008-2017 with RD No. 149-2017-GRA-
GRTPE-DPSC, holds a diploma in management skills from UPC and a master’s
degree in environment and integrated management systems from UNSA.
196/197
César Augusto Velazco Cornelio
Corporate geology manager since March 2018. He previously served as geology
manager at Marcobre S.A.C. From October 2016 to February 2018. He previous
served as deputy corporate manager of geology and brownfields - north cluster
at Volcan Compañía Minera from October 2014 to September 2016. He was
also corporate manager of brownfield explorations and advanced projects at
Hochschild Mining PLC from December 2010 to July 2013. He was corporate
manager of geology, planning and explorations at Companía Minera Aruntani
SAC from May 2008 to November 2010. He also served as general head of mine
geology at Minera Yanacocha from January 1998 to August 2007 and project
geologist at Newmont Peru Limited from January 1994 to December 1997.
Mr. Velazco has a degree in geological engineering from Universidad Nacional
de Ingeniería.
Eduardo Julio Magnasco La Torre
Maintenance and quality manager since November 2010. In his career, he has
served as deputy director of airworthiness at the General Directorate for Civil
Aviation of Lima, director of quality assurance for Compañia de Aviacion Faucett,
maintenance manager at Americana de Aviación in Lima, quality control director
at TANS Perú and maintenance manager of TACA Perú.
Mr. Magnasco is an aeronautical engineer with experience in operations,
maintenance, logistics, regulations, quality, human resources, and administration.
He has an MBA from Universidad Diego Portales in Chile.
Percy Luis Rivera López
Gerente de Asuntos Ambientales desde mayo de 2014. Anteriormente, se
Environmental affairs manager since May 2014. Prior to joining Volcan, he was
manager of safety, health and environment at Minsur S.A. and manager of safety,
health and environment at Votorantim Metais Cajamarquilla S.A.
Mr. Rivera holds a master’s degree in environmental management from
Universidad Nacional de Ingeniería and a certificate in quality management and
environmental auditing from Universidad Nacional Agraria La Molina. He also has
a degree in sanitation engineering from Universidad Nacional de Ingeniería.
Pedro Simón Navarro Neyra
Gerente de Tesorería desde diciembre de 2010. Anteriormente, se desempeñó
Treasury manager since December 2010. He served as deputy finance manager
from 1998 to 2010.
He holds a degree in business administration and a master's degree in business
management from Universidad de Piura, as well as a master's degree in strategic
2 0 1 8 A N N U A L R E P O R T
financial management from Universidad Peruana de Ciencias Aplicadas in Peru
and EOI of Spain.
Willy Antonio Montalvo Callirgos
Accounting and tax manager since September 2015. Prior to that he was a general
accountant at Volcan from November 2010. During his career, he has worked as
an accountant at the department store Ripley S.A., Cia. Minera Ares S.A.C. (Grupo
Hochschild), Química Suiza S.A., Corporación Andina de Distribución S.A. (Carsa),
and PricewaterhouseCoopers.
Mr. Montalvo is a certified public accountant who graduated from Universidad San
Martin de Porres. He has a master's degree in strategic business administration
from the Centrum Business School. He also holds certifications in International
Financial Reporting Standards and International Accounting Standards from the
Association of Chartered Certified Accountants (ACCA, London) and the Institute
of Chartered Accountants in England and Wales (ICAEW, London), as well as a
diploma in tax specialization from Universidad de Lima.
Dayan Gustavo Segura Vandervelde
Information technology manager since September 2017. Prior to that, he was
deputy IT manager for infrastructure and communications at Volcan.
Mr. Segura has a degree in systems engineering from Universidad de Lima and
a master's degree in strategic business management, with a specialization in
innovation, from Monterrey Institute of Technology and Higher Education.
Mauricio Scerpella Iturburu
Budgeting and management control manager since February 2014. Previously,
he was the mining projects controller and corporate head of cost and budget
analysis at Volcan.
Mr. Scerpella obtained an MBA with a specialization in strategy from Monterrey
Institute of Technology and Higher Education. He also has a degree in economics
from Universidad San Ignacio de Loyola.
César Emilio Farfán Bernales
Regional explorations manager since December 2010. He served as corporate
chief of regional explorations from 2007 to 2010 and general superintendent of
the Vinchos mining unit from 2002 to 2007.
He has a degree in geological engineering from Universidad Nacional Mayor de
San Marcos, with postgraduate studies in geology-metallogeny at Universidad
Central in Quito, Ecuador.
198/199 2 0 1 8 A N N U A L R E P O R T

Renzo Muente Barzotti qGENERAL INFORMATION

Employee development manager since October 2014. Mr. Muente joined the
Company in April 2011 as deputy corporate manager of employee development. Volcan Compañía Minera S.A.A.

Previously, he served as human resources manager at Unilever Perú, training
manager for Unilever-Andean Region, and human resources manager for the
food products division of Unilever Colombia.
He has a degree in industrial engineering from Universidad de Lima and a
master's degree in strategic management of human capital from Universidad
Peruana de Ciencias.
Information about incorporation
Volcan Compañia Minera S.A.A. is a mining company that was incorporated by
public deed on February 1, 1998, executed before Notary Public Dr. Abraham
Velarde Álvarez, as a result of the merger of Volcan Compañía Minera S.A. and
Empresa Minera Mahr Tunel S.A. The company is registered in the Public Mining
Registry under Entry 1, Record 41074, Card 11363057 of the Registry of Legal
Entities of Lima.

Ronald Martín Castillo Ángeles
Contracts manager since April 2017. He has served as deputy manager and
contracts manager since February 2011, when he returned to the Company.
Previously he was corporate contracts manager for Compañía Minera Milpo. He
was also logistics-contracts manager at Companía Minera Atacocha.
He began his career in 1997 as mine administrator with the Chungar unit, which
was acquired by Volcan. He subsequently transferred to the Cerro de Pasco unit
where he oversaw corporate contracts until May 2008.
Mr. Castillo holds a public accounting degree from Universidad Nacional Daniel
Alcides Carrión and an MBA from Universidad del Pacifico and Esade Business
School.
Jorge Luis Cotrina Luna
Head of shareholder services since November 1999. He held various positions in
the banking sector from 1984 to 1999. He has a business administration degree
from Universidad Nacional Mayor de San Marcos and studied banking and capital
markets at Pontificia Universidad Católica del Perú.
The company is engaged in the exploration, production, and processing of its own
ore and ore from subsidiaries that carry out extraction, concentration, treatment
and commercialization of all products and concentrates.
Its activities are classified ISIC category 1320, Mining of non-ferrous metal ores.
The Company is a going concern, limited by the availability of ore reserves that
may vary according to investments made in explorations and their results.
Contact
Jorge L. Cotrina L. - Securities Manager
lcotrina@volcan.com.pe
Head Office
Address: Av. Manuel Olguín 373, Santiago de Surco, Lima, Perú
Telephone: (511) 416-7000
Web site
www.volcan.com.pe
Annual Report Volcan 2018 has been prepared by:

Edition
Volcan Compañía Minera S.A.A.
Av. Manuel Olguín 373, Santiago de Surco – Lima 33, Peru

Diagramation and design

Kick Off Typographica
www.ko.com.pe

Printing
Impresiones Santa Ana S.A.C.
Las Lilas 120, Lince

Lima, October 2019

Legal deposit made in the National Library of Peru
N°2011-04680
Volcan Compañía Minera S.A.A.

Mail: sostenibilidad@volcan.com.pe
Address: Avenida Manuel Olguín N° 375,
Santiago de Surco, Lima - Perú

Website: www.volcan.com.pe